Recent FDI Reforms

1) Which of the following statements is correct with respect to FDI in Aviation Sector?

a) 100% FDI is permitted under automatic route.
b) FDI under automatic route is permitted in greenfield airports only.
c) Both a and b
d) Neither a nor b

2) Which of the following statements is correct with respect to FDI in single brand retail segment?

a) 100% FDI is permitted under this segment of retail.
b) Companies with more than 51% foreign ownership must source 30% of the value of goods in India, preferably from MSME.
c) Both a and b
d) Neither a nor b

3) In which of the following sectors, FDI continues to be prohibited?

i) Lottery and gambling
ii) Atomic energy
iii) Multi brand retail
iv) Real Estate Investment Trusts (REITs)
v) Railway operation

a) All of the above
b) i, ii, iv and v only
c) i, iii, iv and v only
d) i, iii and v only

4) What are the caps and terms for FDI in Pharma sector?

a) 74% FDI is permitted under automatic route in brownfield projects.
b) FDI beyond 74% is permitted through government approval route.
c) Both a and b
d) Neither a nor b

5) Which of the following statements is incorrect with respect to FDI in Indian Defence Sector?

a) 49% FDI is permitted under automatic route.
b) FDI beyond 49% is permitted through government approval route.
c) Technology norms have been relaxed.
d) None of the above.

Answers

1) a, FDI under automatic route is permitted in brownfield airports (where funds are pumped into an existing airport).

2) c, Local sourcing norms have been relaxed for 3 years and a relaxed sourcing regime introduced for 5 years.

3) b

4) c

5) d