Foreign Direct Investment inflows from Mauritius to India have fallen drastically from $8.97 billion in the April 2012 to February 2013 period to $4.48 billion at the end of the April 2013 to February 2014 period.
Data from the Indian Department of Industrial Policy and Promotion also shows the percentage of the total Foreign Direct Investment (FDI) inflows from various countries to India on a cumulative basis from April 2000 till date.
Accordingly, the total FDI over the period April 2000 to February 2014 from Mauritius to India, as a percentage of total inflows from all countries, was 36.51%, compared to 38.14% at the end of February 2013, showing that the share of Mauritius is gradually but consistently coming down.
Also, the amount of Foreign Direct Investment Inflows from Mauritius to India during the April, 2000 to February, 2014 period was $78.2 billion compared to $73.1 billion in the April, 2000 to February, 2013 period.
The percentage of the total FDI inflows from Mauritius to India over the period April 2000 to February 2014 showed a mere 1.68% rise compared to the April 2000, to February 2013 period.
The reason behind this drastic decline is that investors are increasingly using Singapore as a channel to route funds into India in stark preference to Mauritius.
Furthermore, with the uncertainty in the Double Tax Avoidance Agreement between India and Mauritius, more and more investors are taking recourse to the Singapore route.
Thus, compared to Mauritius, Singapore has registered a net increase in FDI to $3.91 billion from April 2013 of February 2014 compared to $1.98 for the same period last year.
Accordingly, while Singapore continues to lag Mauritius as a source of FDI into India, it is showing an increased traction with investors, as displayed in the rise in its share by 97%, even as the share of the African island economy has dipped by 50%.
Image (Credit Suisse): While Singapore continues to lag Mauritius as a source of FDI into India, it is showing an increased traction with investors, as displayed in the rise in its share by 97% to $3.91 billion, even as the share of the African island economy has dipped by 50% to $4.48 billion.
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