In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India?
✓ Correct answer: b) Services sector
ExplanationThe services sector has attracted the highest Foreign Direct Investment (FDI) inflows into India in the decade lead- ing up to 2004. This includes banking, insurance, IT, and business process outsourcing (BPO).The liberalization of FDI norms, IT boom, and rapid urbanization contributed to significant investments in financial services, telecommunications, and IT-enabled services.As per Reserve Bank of India (RBI) and Department for Pro- motion of Industry and Internal Trade (DPIIT) reports, the services sector remained the largest recipient of FDI inflows, consistently contributing over 15-20% of total FDI inflows.India’s FDI inflows are primarily driven by key sectors like ser- vices (15-20%), computer software and hardware (15%), and telecommunications (7-8%).Other major contributors include construction (5-6%), trading (5%), automobiles (4-5%), phar- maceuticals (3-4%), and renewable energy (3-4%).Initiatives like Make in India and the PLI scheme have boosted investments, particularly in electronics, clean energy, and manufacturing.In FY 2021-22, FDI reached a record $83.57 b
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