FDI from Mauritius to India is the highest in comparison with all the other countries that invest in India. FDI from Mauritius to India is the highest due to the special treatment of tax that is given in India to the investments that come through Mauritius.
Foreign direct investment in India:
The Indian government realized the fact that foreign direct investment plays a very crucial role in boosting the country's economy by developing the infrastructure, generating new jobs, transfer of technology, and increasing productivity.
Thus the government of India liberalized its economic policies in order to use foreign direct investment as a developmental tool. India offers several positive incentives to the foreign investors such as an abundant supply of educated workforce, low wages, and very strong economic growth in the country which has increased the middle class's power of buying.
Flow of foreign direct investment from Mauritius to India:
The first rank goes to Mauritius in terms of highest inflow of foreign direct investment to India in comparison with all the other countries that make investments in India. This is due to the fact that special tax treatment is given to all those investments that come through Mauritius to India. The total amount of FDI from Mauritius to India came to Rs. 27,891.15 crore between 1991 to 2002. The total percentage of FDI from Mauritius to India stood at 38.7% out of the total foreign direct investment in the country from 1991 to 2002.
Industries attracting FDI from Mauritius to India are:
Electrical equipment
Gypsum and cement products
Telecommunications
Services sector that includes both non- financial and financial
Fuels
Effects of FDI from Mauritius to India:
The effects of increased flow of foreign direct investment from Mauritius to India has been that it has led to the generation of a lot of new employment opportunities, development of the sectors that have received investments, and also growth of the country's economy.
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