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.