Mauritius outshines Singapore to top India FDI charts 

Mauritius elbowed out Singapore to emerge as the top source of foreign direct investment (FDI) into India in 2016-17. In absolute terms, foreign inflow from Mauritius in 2016 -17 stood at $15.72 billion whereas that of Singapore read $8.71 billion, according to data of the Indian Department of Industrial Policy and Promotion (DIPP). In 2015-16, Singapore was in the numero uno position. According to experts, the drop in FDI from Singapore last financial year may be on account of revision of tax treaty with an aim to check round-tripping of funds. The revised treaty came into force from February this year.

Interestingly, although Singapore has come off the perch to the second slot, foreign capital from that country into India is on the upswing. FDI inflow of $13.7 billion in 2015-16 was the highest ever received from Singapore since 2006-07.

Taken together, Mauritius and Singapore account for 50 per cent of total capital inflows into the country. An official said a series of steps to liberalise the FDI policy and to improve ease of doing business have helped attract more and more foreign investors. During the last three years, India has relaxed norms in as many as 21 sectors covering 87 areas. In 2016-17, the total FDI in India grew by 9 per cent to $43.5 billion. Other nations from where foreign inflows recorded healthy growth last financial year include Japan, the Netherlands, the US, Germany, France and the UAE. Foreign investments are crucial for India, which needs around $1 trillion to overhaul its infrastructure such as ports, airports and highways to push growth.