It can be termed as an amazing concurrence that both the top two destinations of India’s FDI overseas and the top two overseas sources of FDI to India are same. These two nations are Mauritius and Singapore. The flows of FDI from Mauritius to India are continuing to grow in spite of the treaty between both the nations to avoid double taxation being amended, as quoted by the Business Standard.
The FDI flows from Mauritius have continued to keep up a steady pace with the 8.3 billion dollars in 2015-16. For the first nine months of 2016- 17, the FDI inflows have reached 13 billion dollars. A similar increase in FDI flows has been recorded for Singapore as well. In fact, the share of both these nations for FDI in India has been in the range of 45-55% for the last four years.
The trend for the FDI outflows from India to both Singapore and Mauritius is also the same. There has been a considerable increase in the FDI outflows to these two nations in the last year. From the 20% share of FDI outflows in 2013-14, the FDI outflows increased to 58% in 2016 under the Indian government led by Narendra Modi.
It is required that a study is conducted to better comprehend this phenomenon of mutual FDI investments between these two nations and India. This will assist to understand the genuineness of the investments, their nature of outward investments and sustainability.
Apart from Singapore and Mauritius, Switzerland, Jersey, and the British Virgin Islands have found a place in the top ten destinations for movement of India’s overseas investments.