35%
24%
49%
51%
Answer is Right!
Answer is Wrong!
The correct answer is (b) 24%.
The Foreign Equity holding allowed in small scale sector in 1995-96 was 24%. This was done in order to attract foreign investment and to promote the growth of the small scale sector. The government also relaxed the norms for foreign investment in the small scale sector in 1999, allowing foreign companies to hold up to 74% equity in small scale units.
Option (a) is incorrect because the foreign equity holding allowed in small scale sector in 1995-96 was 24%, not 35%.
Option (c) is incorrect because the foreign equity holding allowed in small scale sector in 1995-96 was 24%, not 49%.
Option (d) is incorrect because the foreign equity holding allowed in small scale sector in 1995-96 was 24%, not 51%.