2016 · Q93
Which of the following trends in FDI inflows are correct?
- 1In 2003-04, the FDI equity inflow percentage growth was negative.
- 2From 2004-05 to 2007-08, the FDI inflows were very high and positive.
- 3In 2008-09, the FDI inflows were positive, but had decreased relative to the previous year.
Select the correct answer using the codes given below:
Indian EconomyInflation and external sector
- A1 and 3 only
- B1, 2 and 3
- C2 and 3 only
- D1 and 2 only
Explanation
Reading the statements as growth rates (as statement 1 frames them): FDI equity inflow growth was negative in 2003–04 (1 is correct); inflows surged at very high positive growth from 2004–05 through 2007–08 (2 is correct); in 2008–09 inflows remained positive but the growth rate fell sharply from the 2007–08 peak amid the global financial crisis (3 is correct). Hence all three — option (B).