Foreign Direct Investment (FDI) inflows in India increased by 29 per cent to a record $ 40 billion in 2015-16.
Mauritius is the biggest source of foreign direct investment (FDI) in India. It accounted for 34 per cent of FDI inflows in 2015-16.
It was followed by Singapore in second place, which made up 20 per cent of share in FDI inflow last year.
These destinations are said to have been used as tax havens because investments from these countries have been exempt from capital gains tax. But the Indian government recently amended the tax treaty with Mauritius to introduce the tax on investments from the island starting April onwards which impacted FDI inflows from these countries.
But UAE is catching up very fast; FDI inflows from UAE witnessed highest growth in 2015-16. The FDI inflows more than doubled to $1 bn from last year.