As of April 2022, how much FDI is permitted in railways under automatic route in construction, operation, and maintenance of Rail Infrastructure projects?
- A.49%
- B.74%
- C.100%
- D.80%
Correct answer
Explanation
The correct answer is C, 100%. India allows 100 per cent foreign direct investment through the automatic route in the construction, operation and maintenance of rail infrastructure projects.
This opening was announced in 2014 and covers suburban corridors taken up through public private partnership, high speed train projects, dedicated freight lines, rolling stock factories, railway electrification, signalling systems, freight terminals and passenger terminals. Automatic route means the investor needs no prior approval from the government or the Reserve Bank of India and only files the required reports after the money comes in. Train operations themselves stay with Indian Railways, so the investment goes into building and maintaining the assets.
Option A is wrong because there is no 49 per cent ceiling on rail infrastructure. Option B is wrong because 74 per cent is a partial cap used in some other sectors, not here. Option D is wrong because 80 per cent is not a limit used anywhere in India's FDI policy.
Exam tip: rail infrastructure takes 100 per cent FDI on the automatic route, while running the trains stays with Indian Railways.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
Read the full explanation →