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Economics › BoP,FDI,FPI,External Financing

Economics › BoP,FDI,FPI,External Financing

A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why?

Options

(a)

India has preference, for certain countries as regards receiving FDI

(b)

India has double taxation avoidance agreement with Mauritius

(c)

Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India

(d)

Impending dangers of global climate change prompt Mauritius to make huge investments in India

Answer

(B)