In the fiscal year 1995-96, foreign direct investment (FDI) inflow to India was $₹4, 500$ crore. In 2000-01, it rose to $₹14, 800$ crore. Calculate the percentage increase in FDI inflow over this period.

medium 2 marks Class 12 · Economics · Economic Reforms Since 1991

Answer

≈

228.89%

increase

The correct answer is ≈ $228.89%$ increase — State the final percentage increase.

Step-by-step solution

Write down the initial inflow $₹4, 500$ crore and the final inflow $₹14, 800$ crore (why).
Find the absolute increase: $14, 800 - 4, 500 = 10, 300$ crore (why).
Use the percentage‑increase formula $\frac{increase}{initial} \times 100$ (why).
Compute $\frac{10 , 300}{4 , 500} \times 100 = 228.89%$ (why).
State the final percentage increase.

Common mistake: Using the final value as the denominator instead of the initial value.

Concept tested: FDI growth calculation