UPSC Prelims 2001·GS1·economy·open economy

The largest share of Foreign Direct Investment (1997-2000) went to

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  1. AFood and food product sector
  2. BEngineering sectorCorrect
  3. CElectronics and electric equipment sector
  4. DService sector

Explanation

The correct answer is B because during the late 1990s, the engineering sector was the primary driver of industrial growth in India. Following the economic liberalization of 1991, foreign investors focused heavily on core industrial segments including automobiles, high end machinery, and mechanical equipment. Data from the Department of Industrial Policy and Promotion for the period between 1997 and 2000 confirms that the engineering sector attracted the highest volume of Foreign Direct Investment inflows compared to the services, electronics, or food processing sectors, which gained larger shares in later decades.
economy: The largest share of Foreign Direct Investment (1997-2000) went to

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