UPSC 2003 › Indian Economy › External Sector & Balance Of Payments

3 questions · 2003 · answers as per the UPSC key

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UPSC 2003 · Q58 · Indian Economy › External Sector & Balance Of Payments · Save

Which one of the following statements is correct with reference to FEMA in India?

(a) The Foreign Exchange Regulation Act (FERA), was replaced by Foreign Exchange Management Act (FEMA) in the year 2001
(b) FERA was given a sunset clause of one year till 31st May 2002 to enable Enforcement Directorate to complete the investigation of pending issues
(c) Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
(d) As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rules
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Answer: (c) Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
UPSC 2003 · Q85 · Indian Economy › External Sector & Balance Of Payments · Save

With reference to Government of India’s decisions regarding Foreign Direct Investment (FDI) during the year 2001-02, consider the following statements:

  1. Out of the 100% FDI allowed by India in tea sector, the foreign firm would have to disinvest 33% of the equity in favour of an Indian partner within four years.
  2. Regarding the FDI in print media in India, the single largest Indian shareholder should have a holding higher than 26%.

Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (b) Only 2
UPSC 2003 · Q102 · Indian Economy › External Sector & Balance Of Payments · Save

Assertion (A): During the year 2001-02, the value of India’s total exports declined, registering a negative growth of 2.17%.

Reason (R): During the year 2001-02, negative growth in exports was witnessed in respect of iron and steel, coffee, textiles and marine products.

(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
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Answer: (d) A is false but R is true