Security Market in India: UPSC Previous Year Questions (Indian Economy)
1 previous year UPSC Prelims question on Security Market in India (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
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UPSC 2004Indian Economy · Security Market in India
Q1. In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India?
Explanation
The services sector has attracted the highest Foreign Direct Investment (FDI) inflows into India in the decade leading up to 2004. This includes banking, insurance, IT, and business process outsourcing (BPO). The liberalization of FDI norms, IT boom, and rapid urbanization contributed to significant investments in financial services, telecommunications, and IT-enabled services. As per Reserve Bank of India (RBI) and Department for Pro-motion of Industry and Internal Trade (DPIIT) reports, the services sector remained the largest recipient of FDI inflows, consistently contributing over 15-20% of total FDI inflows.
Additional insight:
India’s FDI inflows are primarily driven by key sectors like services (15-20%), computer software and hardware (15%), and telecommunications (7-8%). Other major contributors include construction (5-6%), trading (5%), automobiles (4-5%), pharmaceuticals (3-4%), and renewable energy (3-4%). Initiatives like Make in India and the PLI scheme have boosted investments, particularly in electronics, clean energy, and manufacturing. In FY 2021-22, FDI reached a record $83.57 billion, reflecting strong investor confidence in India’s growth potential.
Answer key for these questions
Q
UPSC year
Correct answer
1
2004
(b) Services sector
Frequently asked questions
How many previous year UPSC questions are there on Security Market in India?
This page covers 1 previous year UPSC Prelims GS Paper-I questions on Security Market in India (Indian Economy), asked from 2000 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Security Market in India?
Questions on Security Market in India (Indian Economy) are available for 15 years, from 2000 to 2025. Use the Year filter to practise a single paper.
