A great deal of FDI of India comes from Mauritius than many major and mature economies like UK and F...........

Economic Affairs Foreign Investment

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A great deal of FDI of India comes from Mauritius than many major and mature economies like UK and France. Why?

India has preference for certain countries as regards receiving

India has double taxation avoidance agreement with Mauritius

Most citizens of Mauritius have ethnic identity with India and so they fell secure to invest in India

Impending dangers of global climatic change prompts Mauritius to make huge investments in India

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Explanation:

The Mauritius route is a channel used by foreign investors to invest in India. Mauritius is the main provider of foreign direct investment (FDI) to India and also the preferred jurisdiction for Indian outward investments into Africa. In fact 39.6% of FDI to India came from Mauritius between 2001 and 2011. India has comprehensive Double Taxation Avoidance Agreement (DTAA) with 88 countries. This means that there are agreed rates of tax and jurisdiction on specified types of income arising in a country to a tax resident of another country.