With reference to Government of India's I decisions regarding Foreign Direct Investment (FDI) during the year 2001-02, consider the following statements: 1. 1. Out of the 100% FDI allowed by India in tea sector, the foreign firm would have to disinvest 33% of the equity in favour of an Indian partner within four years. 2. 2. Regarding the FDI in print media in India, the single largest Indian shareholder should have a holding higher than 26% Which of these statements is/are correct?

1. The question relates to India's Foreign Direct Investment (FDI) policies around 2001-02, specifically regarding the tea sector and print media. 2. Statement 1: Deals with FDI in the tea sector. In 2002, India allowed 100% FDI in the tea sector, subject to conditions including prior government approval and divestment requirements. The statement mentions 100% FDI allowed, but mandates disinvestment of 33% equity within four years. The actual condition stipulated was divestment of 26% equity in favour of an Indian partner within five years. Therefore, the figures (33% and four years) are incorrect. 3. Statement 2: Deals with FDI in print media. In 2002, India opened up the print media sector to FDI, allowing 26% FDI in news and current affairs publications, and 74% (later 100%) in scientific/technical journals. For news media (relevant here), the policy required the single largest Indian shareholder's holding to be higher than the largest foreign shareholder's holding (which was capped at 26%). The statement says the single largest Indian shareholder should have a holding higher than 26%. This is consistent with the policy ensuring Indian control, as the largest Indian shareholder must hold more than the maximum permissible foreign holding (26%). 4. Based on the analysis, Statement 1 is incorrect due to wrong figures for disinvestment percentage and timeline. Statement 2 appears correct as it reflects the condition ensuring Indian majority shareholding/control in the context of the 26% FDI cap. 5. The official answer is (B) 'Only 2'. This aligns with our analysis that statement 1 is incorrect and statement 2 is correct.