FDI will the party last?
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Foreign direct investment (FDI) inflows are more durable compared to other forms of capital inflows. FDI to India picked up dramatically in the last two years, but in now threatened by the global uncertainly.
Tax efficient jurisdictions remain in favour
Mauritius remains the leading route to India due to the favorable tax treaty with this country. The surprise is Singapore’s emergence as another attractive route for FDI following the comprehensive economic corporation agreement. The US, the UK, the Netherlands, Japan and Germany are originating countries. Mumbai, Bangalore, Delhi, Chennai and the regions surrounding them remain the most attractive destinations in India.