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.

More Questions from Indian Economy

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion