How did a tiny country like Mauritius become the biggest FDI investor in India?
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 hig
