Q.4)Discuss the various modes in which a country receives foreign investment. What steps should be taken to boost the flow of foreign investments in India?
Why this question:
Important part of GS-III.
Key demand of the question:
Modes of foreign investment- FDI, FPI, FII, commercial loans and official loans; and measures to boost them in the country.
Discuss- back up the answer by carefully selected evidence to make a case for and against an argument, or point out the advantages and disadvantages of the given context and finally arrive at a conclusion.
Introduce foreign investments in the country using some statistics.
In the first part, explain the various modes of foreign investment categorically- FDI, FPI, FII commercial loans and official loans; and the merits and challenges associated with it.
In the next part, suggest measures that should be followed by the government to boost foreign investments.
Conclude with a balanced approach towards foreign investment with some policies of the government to boost it.