Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with…

Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits. Which of the above can be included in Foreign Direct Investments?
  1. 1, 2 and 3
  2. 3 only
  3. 2 and 4
  4. 1 and 4

Solution

FCCBs, FII with certain conditions, and GDRs can be included in FDI. NRE deposits are categorised under NRI deposits and not under FDI.

Asked in: UPSC Prelims 2021

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