At present the foreign direct investment limit for railway infrastructure is _______.
- A.50%
- B.75%
- C.100%
- D.0%
Correct answer
Explanation
The correct answer is C, 100%. India allows foreign direct investment of up to 100 per cent through the automatic route in railway infrastructure. The sector was opened in 2014, and the list covers suburban corridors taken up as public private partnerships, high speed train projects, dedicated freight lines, the making of rolling stock such as coaches, locomotives and train sets, railway electrification, signalling systems, freight and passenger terminals and mass rapid transport systems. Automatic route means the investor needs no prior approval from the government and only reports the investment to the Reserve Bank. Running the railways themselves remains with Indian Railways; only the infrastructure listed above is open. Option A is wrong because 50 per cent has never been the ceiling for this sector. Option B is wrong because 75 per cent belongs to no railway rule. Option D is wrong because railway infrastructure is not a prohibited sector, unlike lottery, gambling, chit funds, atomic energy and cigarette manufacture. Exam tip: railway infrastructure 100 per cent automatic, defence 74 per cent automatic.
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.
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