The correct answer is 1991. Explanation & Key Takeaways: • The 1991 Industrial Policy recognized Foreign Direct Investment (F.D.I.) for higher investment and acquisition of new technologies in high-priority industries. • Prior to 1991, India's import-export trade was restricted to a large percentage, while foreign exchange transactions were largely controlled by the government. • This led to high import prices and low export prices, which created a problem of an unfavorable trade deficit. The need for economic reforms arose to improve the state of trade. • The entry of foreign capital was criticized for the dominance of multinational companies and investment in priority sectors. • Initially, the FDI limit was 51%. • That limit was later raised to 74% and for most industries to 100%. • Foreign capital inflows have been criticized for being dominated by multinational corporations and investment in priority sectors. • The ease of doing business in the country is considered to be conducive to the growth of foreign direct investment. • The limit for foreign direct investment in the telecom sector has been raised to 100%. • Rising interest rates in developing countries trigger an increase in foreign direct investment.