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
  • A
    Services sector (financial, business services, outsourcing, etc.)
  • B
    Computer software & hardware
  • C
    Telecommunications
  • D
    Automobile 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.

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