In the last decade or so, among the sectors listed below, which has attracted the highest foreign direct investment (FDI) inflows into India?

Introduction / Context:
Foreign Direct Investment (FDI) plays a major role in India growth story, particularly in sectors that require large capital expenditure and advanced technology. Over the last decade, policy liberalisation and rapid expansion in certain industries have attracted substantial FDI inflows. This question asks you to identify, from among the listed sectors, which one has attracted the highest FDI inflows into India in recent years, as highlighted in many exam oriented summaries and reports.

Given Data / Assumptions:

• The sectors mentioned are food processing, petro chemical, chemicals other than fertilisers, and telecommunications, with an additional option in handloom and textiles.
• We focus on relative FDI attractiveness among these listed sectors, not necessarily across all sectors of the economy.
• Recent policy measures have allowed higher FDI limits in certain infrastructure and service sectors.
• The telecommunications sector in India has undergone rapid expansion, requiring significant capital and technology.

Concept / Approach:
FDI tends to flow to sectors that offer high growth potential, large markets, and supportive regulatory environments. Telecommunications in India has seen massive growth in subscriber base, data usage, and network expansion during the last decade. The government has progressively liberalised FDI limits in telecom, making it an attractive destination for global telecom companies and investors. While food processing and chemical industries do receive FDI, the scale and visibility of telecom investments have been particularly notable when compared with the other options given.

Step-by-Step Solution:
Step 1: Consider the telecommunications sector. It has high capital requirements for spectrum auctions, infrastructure rollout, and technology upgrades, making it a natural magnet for foreign investment.Step 2: Review the food processing sector. Although important for value addition in agriculture, FDI inflows into food processing have generally been smaller relative to telecom.Step 3: Assess the petro chemical and other chemical sectors. They do receive foreign investment, but the regulatory and market dynamics have not generated FDI volumes as large as those in telecom in many recent years.Step 4: Handloom and textiles, while significant for employment, have historically been less dominant in FDI rankings compared with capital intensive, technology driven sectors.Step 5: Based on typical FDI statistics and exam summaries, telecommunications is repeatedly highlighted as one of the top FDI attracting sectors among such lists.Step 6: Therefore, among the options provided, the telecommunications sector is the correct choice.

Verification / Alternative check:
FDI data published over the years show that services and telecom are often among the leading sectors attracting foreign investment. The liberalisation of FDI caps in telecom, entry of multinational telecom operators, and large mergers and acquisitions have all contributed to high inflows. In contrast, while food processing and chemicals are important, they usually appear lower down in FDI ranking tables for given years. When exam preparation books discuss major FDI destinations by sector, telecom is consistently mentioned as a major recipient, confirming this choice for questions framed with these specific options.

Why Other Options Are Wrong:
Food processing sector: Although it has growth potential and receives FDI, its inflows have typically been lower compared to the telecom sector.

Petro chemical industry: This sector does attract investment but has not been consistently highlighted as the highest FDI recipient among such lists in the last decade.

Chemicals other than fertilisers: This is an important industrial category but not usually at the top of FDI inflow rankings when compared with telecom.

Handloom and textiles sector: This sector is labour intensive and significant for exports, but it has not been a leading sector in terms of FDI inflows.

Common Pitfalls:
Candidates sometimes assume that sectors linked to agriculture or traditional industries like textiles receive the most FDI due to their social importance. However, FDI decisions are driven more by profitability, market size, and capital requirements. Remember that, among the options given, telecom stands out because it combines large markets, high capital intensity, and liberal FDI rules. Keeping this perspective helps in tackling similar FDI related questions in exams.

Final Answer:
Among the listed sectors, the telecommunications sector has attracted the highest FDI inflows into India in the last decade or so.