Logical Reasoning Question 21
Question; Direction; Study the following passage carefully and answer the questions given below:
Since India’s adoption of liberalization policy in 1991, multiple opportunities for investment have attracted various foreign investors. The government ensured that projects were approved quickly and moreover 34 industrial sectors were allowed automatic approval of projects. The investment was focused on the industrial sector and thus, has majorly contributed towards manufacturing sector growth. There was also relaxation in the percentage of ownership to be held by foreign actors. This led to various industrial project initiations in the sectors like automobiles, infrastructure, computer software’s etc. Hence, India’s FDI is approximately 25 times more than what it was before adoption of liberalization policy. What is implied about the foreign players of FDI in India as given in the passage?
Options:
A) Foreign nationals were interested in investing in India
B) Before liberalization foreign investors were limited by their shareholding
C) Channeled various industrial project initiations in India
D) The government approved foreign investment quickly
Show Answer
Answer:
Correct Answer; B
Solution:
- (b)
- Deductive reasoning
- Assumption(s)
- Cause and Effect Analogy After liberalization policy was adopted by India, the investment was focused on the industrial sector and has mainly contributed towards manufacturing sector growth which has led to it being held by foreign actors. It means, the share was limited to them before liberalization.
BETA
