Mains Answer Writing - 16 Feb, 2026

GS3

Economy

10 marks

Discuss the rationale behind introducing graded Foreign Direct Investment (FDI) limits within sectoral caps in India. How can such a framework balance economic growth with strategic autonomy?

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Tips for your answer

Start with the problem statement — explain why uniform sectoral caps are inadequate (need capital inflow vs security concerns in defence, telecom, banking).
Explain the mechanism — show how graded limits work (different thresholds, conditional approvals, downstream investment monitoring).
End with balance & outcome — conclude on “ease of doing business + national security + technological sovereignty” rather than only investment inflow.

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