UPSC Prelims Practice Questions — Net FDI negative for fourth month in a row in Nov. 2025
Q1. With reference to India's foreign direct investment (FDI) flows reported in the RBI's January 2026 monthly bulletin for November 2025, consider the following as contributors of more than three-fourths of total FDI inflows during the month:
1. Japan
2. Singapore
3. United States of America
4. Mauritius
Which of the above is/are correctly identified?
- Japan
- Singapore
- United States of America
- Mauritius
- A. 1 and 2 only
- B. 2 and 4 only
- C. 1, 2 and 3 only
- D. 1, 2, 3 and 4
Q2. Which one of the following authorities compiles and releases India's monthly Net Foreign Direct Investment (FDI) data under the Balance of Payments framework, as reported for November 2025?
- A. Department for Promotion of Industry and Internal Trade (DPIIT)
- B. Reserve Bank of India (RBI)
- C. Ministry of Statistics and Programme Implementation (MoSPI)
- D. Securities and Exchange Board of India (SEBI)
Q3. In the context of the RBI's monthly bulletin reporting that 'Net FDI' turned negative in November 2025, which one of the following best describes 'Net FDI'?
- A. Gross FDI equity inflows minus FDI in services sector
- B. Gross FDI inflows minus (repatriation, disinvestment and outward FDI by Indian entities)
- C. Gross FDI inflows minus net Foreign Portfolio Investment (FPI) outflows
- D. Gross FDI inflows minus External Commercial Borrowings repaid during the period
Q4. As per the RBI's monthly bulletin released in January 2026, for how many consecutive months up to and including November 2025 had India's Net FDI remained negative?
- A. Two months
- B. Three months
- C. Four months
- D. Six months
Q5. Foreign Direct Investment (FDI) into India, whose flows the RBI tracks in its monthly bulletin, is primarily regulated under which one of the following statutes?
- A. Foreign Exchange Regulation Act, 1973
- B. Foreign Contribution (Regulation) Act, 2010
- C. Foreign Exchange Management Act, 1999
- D. Securities Contracts (Regulation) Act, 1956