The Government of India allowed automatic approval of _____% of FDI by Reserve Bank of India in nine categories of industries.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Up to 74.
- The Government of India allowed automatic approval of up to 74% of FDI by the Reserve Bank of India (RBI) in certain sectors, particularly under the automatic route for industries such as defense, civil aviation, and certain service sectors.
- This was done to encourage foreign investment while maintaining strategic control over certain key sectors. For investments beyond 74%, government approval is typically required.