NextMockSearch exams, e.g. SSC CGL, UPPSC, Lekhpal
हिंदी
State PCS PYQPrelims 2024

UPPCS · Question 54

Given below are two statements, one labelled as Assertion (A) and the other as Reason (R). Assertion (A): During 2023-24, Singapore emerged as the largest source of FDI to India. Reason (R): The India-Mauritius Tax Treaty amendment has brought a major shift in countries as major sources of FDI to India. Select the correct answer using the code given below.

  1. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
  2. (A) is false, but (R) is true
  3. Both (A) and (R) are true and (R) is the correct explanation of (A)
  4. (A) is true, but (R) is false
Show answer & explanation

Answer: (C) Both (A) and (R) are true and (R) is the correct explanation of (A)

Explanation

Singapore was the top FDI source in 2023-24. The 2016 amendment to the India-Mauritius DTAA removed capital-gains benefits and shifted routing to Singapore. (Verify with the official key.)