What was the previously allowed percentage of FDI for single-brand retail in a company before the amendment in January 2018?
This questions was previously asked in
RBI Grade B (16 August 2018)
Explanation:
- Before the amendment in January 2018, the Foreign Direct Investment (FDI) policy allowed up to 49% FDI under the automatic route for single-brand retail trading.
- However, 100% FDI was permitted with government approval for investments above 49%.
- 49% is the correct answer, meaning foreign companies could own nearly half of a single-brand retail entity without prior government approval.
- 25% and 33% were not recognized thresholds in the policy.
- 67% and 74% exceed the automatic approval cap.
Correct Answer: Option 3 - 49%
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By: Parvesh Mehta