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  9. Q8

HPSC HCS 2024 · Question 8 of 100

Consider the following statements regarding the Foreign Portfolio Investment (FPI) in India: 1. It has fluctuated drastically in the past decade. 2. In 2022-23, the net FPI in India was less than 1% of the GDP. 3. Foreign Exchange Management Act, 1999 is the primary legislation governing FPI in India. How many of the statements given above are correct?

Economy

  1. AOnly 1
  2. BOnly 2
  3. CAll ThreeCorrect
  4. DNone

Answer: C. All Three

Explanation

FPI flows have been highly volatile over the past decade; net FPI in 2022-23 was negative and well below 1% of GDP; and FEMA, 1999 is the primary legislation governing FPI. All three statements are correct.

Source: HPSC HCS Prelims Paper-I held 11 Feb 2024 (freejobalert PDF)

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