Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits Which of the above can be included in Foreign Direct Investments?

Answer: A. Foreign currency convertible bonds (1), FII with conditions (2), and Global Depository Receipts (3) can be included in FDI. FOREIGN DIRECT INVESTMENT (FDI) is investment made by a non-resident in shares or instruments of an Indian enterprise that confers a lasting interest and control or significant influence. India's FDI policy includes specific instruments. (1) FOREIGN CURRENCY CONVERTIBLE BONDS (FCCBs): CORRECT. FCCBs are debt instruments issued by Indian companies in foreign currency that are convertible into equity. Their conversion into equity adds to FDI. Issuance is governed by FEMA and the External Commercial Borrowings (ECB) policy, and conversions count as FDI under Schedule 1 of the FDI policy. (2) FII INVESTMENT WITH CERTAIN CONDITIONS: CORRECT. As per the FDI Policy 2017 and amendments, FPI (formerly FII) investment in a company that crosses 10% of paid-up capital and is held with a strategic interest can be reclassified as FDI (subject to RBI/SEBI conditions). The qualifier 'with certain conditions' in the statement reflects this nuance. (3) GLOBAL DEPOSITORY RECEIPTS (GDRs): CORRECT. GDRs are foreign-currency denominated instruments issued by Indian companies to raise capital from international markets, backed by underlying equity shares. GDR issuance is treated as FDI under Indian regulations. (4) NON-RESIDENT EXTERNAL (NRE) DEPOSITS: WRONG. NRE deposits are bank deposits by NRIs in Indian banks. They are RUPEE-DENOMINATED DEPOSITS held by NRIs, NOT direct investment in equity or enterprise. NRE deposits count under EXTERNAL DEBT, NOT FDI. Source: FEMA / DPIIT FDI Policy / RBI Master Direction on FDI.