Question

Consider the following statements:
$1.$ In Private sector banking $100$% Foreign Direct Investment through automatic route in India is allowed.
$2.$ Foreign Direct Investment is not allowed in real estate business in Indian economy.
Which of the statements given above is/ are correct?

• A. Only $1$
• B. Only $2$
• C. Both $1$ and $2$
• D. Neither $1$ nor $2$

Answer 1

The correct option is B Only $2$

Indian government has allowed up to 74% FDI investment in private banking, 49% of which is allowed through automatic route and government intervention is mandatory for the next 25%. FDI is prohibited in real estate business which does not include construction of residential or commercial premises, developments of townships.