#41 Unveiling India's $1 Trillion FDI Journey: The Surprising Role of Mauritius & Singapore
India Foreign Direct Investment inflows have reached the star mark of $1 trillion over the period of April 2000 to September 2024. The inflow in the last decade has been ~$667b.
While my hunch was that the USA or Japan would have been the major contributors, a split of inflows by countries shows that Mauritius and Singapore have contributed ~50% of these investments.
The Sectors that have attracted the highest inflows are services, computer software and hardware, telecommunications, trading, construction development, automobiles, chemicals, and pharmaceuticals.
Why Mauritius and Singapore?
Both the countries are tax havens and offer very low corporate tax rates and favourable double taxation avoidance agreements (DTAAs). Most of the investments are routed through these countries to India hence getting a real time sense becomes difficult due to the shell companies
While India has mostly been net positive in FDI, i.e. more inflows than outflows - there isn’t a good single source to identify where India is investing.
Source: DPIIT
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