- Following the 1991 reforms, India opened up many sectors to foreign investment. - The USA consistently ranked as the top or among the top sources of FDI in India during the early to mid-1990s. - Japan was also a significant investor during this period, often ranking among the top few countries investing in India. - Germany and Israel were not as prominent as the USA and Japan in terms of the volume of FDI flows to India during 1991-95.
During 1991-95 the countries which brought largest direct foreign investment to India are:
Asked in UPPCS Prelims 1995 · Topic: Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) (Trends and Patterns of FDI and FPI Inflows/Outflows in India)
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Answer: A. USAand Japan
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