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.
General Knowledge
Indian Economy
Difficulty: Medium
Choose an option
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AServices sector (financial, business services, outsourcing, etc.)
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BComputer software & hardware
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CTelecommunications
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DAutomobile manufacturing
Answer
Correct Answer: Services sector (financial, business services, outsourcing, etc.)
Explanation
Given data
- We compare aggregate FDI inflows by sector over a decade horizon.
Concept / ApproachAcross 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 reasoningWhile 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 AnswerThe sector with the highest cumulative inflows over the past decade is the Services sector.