IIFT 2013 Question Paper

Let us calculate the increase in share of FDI inflow between the terminal years 2007 and 2012for all the options:-
A. Services Sector = 20.8 - 18.2 = 2.6
B. Construction Development = 10.5-7.6 = 2.9
C. Automobile industry = 4.9-1.9 = 3
D. Power = 3.2-1.3 = 1.9
Thus, the increase in share of FDI inflow between the terminal years 2007 and 2012 has been HIGHEST for the Automobile industry.
Hence, option C is the correct answer.

The simple average share of FDI inflows will be the 2nd lowest for the industry which has the sum of the FDI inflows the 2nd lowest
Calculating the sum of the FDI inflows for all the sectors we get:-
Service sector = 115.8
Construction Development = 56
Telecommunications = 37.4
Drugs and pharmaceuticals = 15.7
Computer Hardware and Software = 30.4
Chemicals(Other than fertilizers) = 25.1
Automobile industry = 23.7
Power = 24.8
Metallurgical industries = 25.3
Hotel and Tourism = 25
Thus, the simple average share of FDI inflows has been SECOND LOWEST for the Automobile industry.
Hence, option B is the correct answer.

The percentage share of FDI inflow in Power Sector from 2009-2012 is 5.8, 5.1, 4.8 and 3.2 respectively.
Thus, during 2009 to 2012 the percentage share of FDI inflow in power sector has witnessed a continuous decline. Thus, option A is not False.

The percentage share of FDI inflow in drug and pharmaceuticals Sector from 2007-2009 is 1.4, 0.8 and 0.7 respectively.
Thus, during 2007 to 2009 the percentage share of FDI inflow in drug and pharmaceuticals sector has witnessed a continuous decline. Thus, option B is not False.

The percentage share of FDI inflow in Hotel and Tourism from 2009-2011 is 2.2, 2.4 and 2.6 respectively.
Thus, during 2009 to 2011 the percentage share of FDI inflow in Hotel and Tourism sector has witnessed a continuous increase. Thus, option C is not fall.

The percentage share of FDI inflow in Power Sector from 2009-2012 is 1.3, 1.9, 1.7, 2.1 respectively.
Thus, During 2007 to 2010 the percentage share of FDI inflow in Chemicals (other than Fertilizers) sector has not witnessed a continuous increase. Thus, option D is false.

Hence, option D is the correct answer.

The following table shows the ranks of different sectors on the basis of the FDI inflow:-

Also, in 2009, the Computer Software and Hardware sector was ranked sixth in terms of percentage share of FDI inflow in the country
But in 2012, the drugs and pharmaceuticals sector was ranked third lowest from the bottom in terms of percentage share of FDI inflow in the country
Hence, only i and ii are true.
Hence, option B is the correct answer.

Increase in FDI inflow percentage share for Telecommunications sector between 2007 and 2008 = 8.3-5.5 = 2.8
Increase in FDI inflow percentage share for Computer Software and Hardware sector between 2009 and 2010 = 4.7-2.5 = 2.2
Increase in FDI inflow percentage share for Automobile sector between 2011 and 2012 = 4.9-2.5 = 2.4
Increase in FDI inflow percentage share for Power sector between 2007 and 2008 = 3.9-1.3 = 2.6
Thus, option A is the correct answer.

Let us calculate the absolute difference for the given options:-
A. 10-9.98 = 0.12
B. 5.51-5.38 = 0.13
C. 17.2-17.1=0.1
D. 1.75-1.59 = 0.16
Thus, export share of India witnessed HIGHEST year-to-year decline in absolute terms in In West Asia (GCC) region from 2008-09 to 2009-10.
Hence, option C is the correct answer.

The following table shows the decrease(indicated by down arrow) in export shares for the given regions:-

Thus, as we can see the export share of South Asia decreased 6 times, that of North East Asia decreased 5 times, that of North America decreased 7 times and that of EU countries decreased 5 times.
Thus, among the four options mentioned, North America is the region having the export shares declined maximum number of times in a year-on-year basis.
Hence, option C is the correct answer.

Among the four options 

Growth rate of North Africa = (1.59-1.75)/1.75=-0.09

Growth Rate of North East Asia=(14.83-16.1)/16.1= -0.07

Growth rate of North America= (10.98-11.9)/11.9=-0.07

Growth Rate of EU = (18.33-20.2)/20.2 = -0.05

Growth rate of North Africa is lowest.

Hence, option A is the correct answer.

India’s simple average export share to North Africa during 2008-09 and 2009-10 = $$\dfrac{1.89+1.75}{2} = 1.795$$
India’s simple average export share to East Africa during 2004-05 and 2007-08 = $$\dfrac{1.37+2.58}{2} = 1.975$$
India’s simple average export share to Latin America during 2002-03 and 2004-05 = $$\dfrac{2.06+2.15}{2} = 2.105$$
India’s simple average export share to West Africa during 2007-08 and 20010-11 = $$\dfrac{2.13+1.71}{2} = 1.92$$
Clearly, India’s simple average export share to East Africa during 2004-05 and 2007-08 is the highest among the given options.
Hence, option C is the correct answer.

Only Statement D is false because between 2002-03 and 2003-04, the growth rate in India’s export has been the highest for South Asia and not West Asia (GCC)
Hence, option D is the correct answer.