The correct answer is: a) Grants and transfers from the central government.
Arunachal Pradesh is one of the eight special category states in India. These states receive a significant share of their revenue in the form of grants and transfers from the central government. This is done to help these states develop and grow.
Foreign Direct Investment (FDI) is investment made by a foreign company in a company or project in another country. Market borrowings are loans that a government or company takes from the market, usually by issuing bonds. Corporate Social Responsibility (CSR) funding is money that companies donate to social or environmental causes.
While all of these things can contribute to a state’s revenue, only grants and transfers from the central government are specifically designated for special category states.