Which of the following statement (s) is/are correct?
Statement 1: The foreign investment, which includes foreign direct investment (FDI) and foreign institutional investment (FII) in India has increased from about US dollars 100 million in 1990-91 to US dollars90 billion in 2017-18.
Statement 2: There has been an increase in the foreign exchange reserves from about US dollars 6 billion in 1990-91 to about US dollars 1000 billion in 2018-19.
Answer & explanation
Correct answer: option 4
The opening of the economy has led to a rapid increase in foreign direct investment and foreign exchange reserves. The foreign investment, which includes foreign direct investment (FDI) and foreign institutional investment (FII), has increased from about US $100 million in 1990-91 to US dollars 30 billion in 2017-18. There has been an increase in the foreign exchange reserves from about US $ 6 billion in 1990-91 to about US dollars 413 billion in 2018-19. India is one of the largest foreign exchange reserve holders in the world.