By Subrata Majumder
Breaking the legacy of Mauritius, Singapore topped in the foreign direct investment (FDI) race in India. In 2018-19, FDI flow from Singapore was US $16,228 million , as compared to US $ 8,084 million from Mauritius. It was third time that Singapore edged out Mauritius in FDI race in India.
Nevertheless, in 2018-19 the significance of Singapore’s outnumbering Mauritius in FDI race was that it was on the binge for a sparkling growth, in contrast to FDI shrinking from Mauritius. In 2013-14 and 2015-16 when Singapore edged out Mauritius, it accounted for 24.6 percent and 34.3 percent share respectively of the total FDI flow in India. In 2018-19, its share went up further high when it accounted for 36 per cent of total FDI flow in the country.
This trend pitches a ground that Singapore is assertive to top FDI in the years to come. Mauritius stint at the top place started shredding since 2018-19. It downsized nearly to half of its flow in 2017-18 – from US $ 15, 941 million in 2017-18 to US$ 8084 million in 2018-19. Correspondingly, FDI from Singapore surged by over 33 percent in 2018-19. The main cause for the downslide was abrogation of capital gain tax benefit under the new Double Taxation India Mauritius Tax Treaty.