Civil Services Examination · Question 7
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?
Show answer & explanation
Answer: (A) 1, 2 and 3
Explanation
FCCBs, GDRs and FII investment above the 10% threshold can count as FDI. NRE deposits are bank deposits, not investment in enterprises.