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Foreign Direct Investment (FDI) into India over the last decade: Identify the sector that has attracted the highest FDI inflows. Consider broad sectoral groupings used in official statistics (e.g., services, computer software & hardware, manufacturing, telecom). Choose the correct sector.

Difficulty: Medium

Correct Answer: Services sector (financial, business services, outsourcing, etc.)

Explanation:


Given data

  • We compare aggregate FDI inflows by sector over a decade horizon.


Concept / Approach
Across multi-year windows, the services sector—which typically aggregates financial, banking, insurance, business process management, R&D, and other market services—has consistently been among the top FDI recipients, often ranking first in cumulative terms.


Step-by-step reasoning
While computer software & hardware has topped certain individual years, the broader services basket generally leads on a 10-year cumulative basis → choose Services.


Common pitfalls

  • Using a single financial year's ranking instead of a decade-long cumulative perspective.
  • Confusing narrow sub-sectors with the broader services aggregate used in policy reporting.


Final Answer
The sector with the highest cumulative inflows over the past decade is the Services sector.

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