Question

Define or explain the concepts.

1. Industrial sector

2. F.D.I

3. FEMA

Answer 1

1. The industrial sector, also known as the secondary sector, is responsible for manufacturing finished goods in an economy. It includes manufacturing, processing and construction activities related to metal working and smelting, automobiles, textiles, chemicals, electrical and electronic goods.

2. FDI or Foreign Direct Investment refers to direct investment in the business of a domestic country by a foreign business. It is either done by buying the domestic business by the foreign company or by extending the operations of a business in other countries. As a part of the liberalisation policy, India laid high emphasis on encouraging FDI.

3. The Foreign Exchange Management Act (FEMA) was enacted by the Indian government to allow free movement of goods and services from and to other countries. This Act provides Indian companies access to global markets and allows them to avail loans in foreign currencies.