Singapore Overtakes Mauritius As India's Top FDI Source

Singapore has replaced Mauritius as the largest source of foreign direct investment into India.

India attracted nearly $6 billion in FDI from Singapore in the last fiscal, according to the Department of Industrial Policy and Promotion (DIPP).

FDI inflow from Mauritius dried up to $4.9 billion in 2013-14, compared to $9.5 billion in 2012-13.

The UK reclaimed the third spot, leaving behind Japan ($1.7 billion), with FDI worth $3.2 billion in 2013-14.

Investors worldwide have preferred to route funds to India via the Mauritius route because of the tax sops offered by the island nation.

Singapore has, however, managed to gain some glitter in the recent years as India offered similar tax advantages as part of the Comprehensive Economic Cooperation Agreement. However, the tax avoidance treaty came up to ensure that only genuine investors could benefit.