UPSC Prelims 2004·GS1·economy·economic sectors and development

In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India?

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Last updated 23 May 2026, 3:31 pm IST
  1. AChemicals other than fertilisers
  2. BServices sector
  3. CFood processing
  4. DTelecommunicationCorrect

Explanation

The correct answer is D because the Telecommunication sector has consistently been one of the top recipients of Foreign Direct Investment in India over the last decade. While the Services sector as a broad category often ranks high, in the specific context of this UPSC question and official government data trends for that period, Telecommunication saw massive capital inflows due to the rapid expansion of 4G networks, digital infrastructure, and large scale international investments in Indian telecom majors. This sector outperformed Chemicals, Food processing, and specific sub sectors of services in total cumulative FDI volume during that timeframe.
economy: In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflow
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