Question
Consider the following statements regarding Net Foreign
Direct Investment (FDI) in Q1 FY 2024-25: 1. Net FDI during April-June 2024 was $6.9 billion, up from $4.7 billion in the same period last year. 2. The major source countries contributing to the FDI flows included Singapore, Mauritius, the Netherlands, the US, and Belgium, which together accounted for 75% of the flows. 3. Net FDI flow for FY24 dropped to $9.8 billion from $38.6 billion in FY22, indicating a consistent rise in FDI over the past two years. Which of the above statements is/are correct?Solution
Statement 1 is correct: According to RBI data, Net FDI during April-June 2024 was indeed $6.9 billion, up from $4.7 billion in the same period last year. • Statement 2 is correct: Singapore, Mauritius, the Netherlands, the US, and Belgium were the major source countries, contributing to 75% of the FDI flows. • Statement 3 is incorrect: While it is true that net FDI flow for FY24 dropped to $9.8 billion, this represents a decline, not a consistent rise, in FDI over the past two years (from $38.6 billion in FY22).
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