UPSC Prelims Practice Questions — March 2026 saw net foreign investments decline to -$11.7 bn

Q1. The monthly data showing net foreign investment of -$11.7 billion in March 2026, disaggregated into net FDI and net FPI, is compiled and released as part of India's Balance of Payments statistics by which one of the following?

  • A. Securities and Exchange Board of India
  • B. Reserve Bank of India
  • C. Department for Promotion of Industry and Internal Trade
  • D. National Statistical Office, Ministry of Statistics and Programme Implementation

Q2. As per RBI data, net FDI turned positive in March 2026 for how many consecutive months?

  • A. One
  • B. Two
  • C. Three
  • D. Five

Q3. The foreign portfolio investor (FPI) outflow recorded in March 2026 amid the West Asia crisis was described as the highest monthly outflow in how many years?

  • A. Three years
  • B. Four years
  • C. Six years
  • D. Ten years

Q4. The 2026 West Asia crisis was characterised as a 'live balance of payments stress test' for India by the holder of which one of the following offices?

  • A. Governor, Reserve Bank of India
  • B. Chief Economic Adviser to the Government of India
  • C. Union Finance Minister
  • D. Vice-Chairman, NITI Aayog

Q5. In the Reserve Bank of India's Balance of Payments statistics, the term 'net FDI' is best described as which one of the following?

  • A. Gross inward FDI into India without adjusting for any repatriation or outward flows
  • B. Gross inward FDI net of repatriation/disinvestment and net of outward FDI by Indian residents
  • C. The arithmetic difference between total FDI and total FPI inflows in a given period
  • D. Inward FDI measured net of foreign portfolio investment outflows

Q6. The committee constituted to draw up a phased roadmap for Capital Account Convertibility in India was chaired by whom?

  • A. C. Rangarajan
  • B. S. S. Tarapore
  • C. Bimal Jalan
  • D. Raghuram Rajan

Q7. The operation of selling US dollars out of foreign exchange reserves to moderate the rupee's depreciation during the 2026 West Asia crisis is carried out by which one of the following?

  • A. Securities and Exchange Board of India
  • B. Reserve Bank of India
  • C. Department of Economic Affairs, Ministry of Finance
  • D. Export-Import Bank of India

Q8. In the context of foreign investment inflows into India, the 'Automatic Route' for FDI refers to which one of the following?

  • A. FDI for which neither the Indian company nor the foreign investor requires prior approval of the RBI or the Government of India
  • B. FDI that is automatically reclassified into portfolio investment once the 10 per cent equity threshold is crossed
  • C. FDI permitted only after prior clearance by the erstwhile Foreign Investment Promotion Board
  • D. FDI that is automatically channelled through SEBI-registered custodian banks