UPSC CSE Mains 2016 · GS3

Justify the need for FDI for the development of the Indian economy. Why there is gap between MoUs signed and actual FDIs? Suggest remedial steps to be taken for increasing actual FDIs in India.

Theme

T130 Liberalisation & FDI: retail, defence, Indian firms vs MNCs

What UPSC asks in this theme

UPSC asks why India needs FDI and why MoUs don't become investment, FDI in defence and multi-brand retail, and whether Indian firms compete with MNCs after liberalisation.

What to cover

FDI policy: automatic vs government route
MoU–actual FDI gap: land, approvals, policy uncertainty
FDI in defence and multi-brand retail: caps and effects
Liberalisation effects on Indian firms

Writing the answer

Pros, cons, reforms

These notes are for the whole theme, built from all 4 of its PYQs. UPSC does not publish model answers.

More PYQs from this theme

GS32014
Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized. What influence this is expected to have on Indian defence and economy in the short and long run?
GS32013
Examine the impact of liberalization on companies owned by Indians. Are they competing with the MNCs satisfactorily? Discuss.
GS32013
(a) Discuss the impact of FDI entry into Multi-trade retail sector on supply chain management in commodity trade pattern of the economy. (b) Though India allowed Foreign Direct Investment (FDI) in what is called multi-brand retail through the joint venture route in September 2012, the FDI, even after a year, has not picked up. Discuss the reasons.

All 22 GS3 2016 questions · Technology, Economy, Environment, Security & Disaster Management · Report a typo