Answer» Correct Answer - Option 1 : Mauritius
The correct answer is Mauritius. - Mauritius's share in Foreign Direct Investment Equity inflows, in India during 2016 - 17, is on the top.
- FDI in India in 2019-20
- Singapore emerged as the largest source of FDI in India during the last fiscal with $ 14.67 billion investments.
- It was followed by Mauritius ($ 8.24 billion), the Netherlands ($ 6.5 billion), the US ($ 4.22 billion),
- Cayman Islands ($ 3.7 billion), Japan ($ 3.22 billion), and France ($ 1.89 billion).
- About FDI
- ‘FDI’ or ‘Foreign Direct Investment’ means investment through capital instruments by a person resident outside India.
- FDIs are actively utilized in open markets rather than closed markets for investors.
- Types of FDI
- Horizontal, vertical, and conglomerate are types of FDI’s.
- Horizontal is establishing the same type of business in another country, while vertical is related but different, and conglomerate is an unrelated business venture.
- Routes through which India gets FDI
- Automatic Route: In this, the foreign entity does not require the prior approval of the government or the RBI.
- Government route: In this, the foreign entity has to take the approval of the government.
- The Foreign Investment Facilitation Portal (FIFP) facilitates the single window clearance of applications which are through approval route.
- Entities that can invite FDI in India
- Partnership Firm
- Proprietary Concern
- Trusts
- Limited Liability Partnerships (LLPs)
- Investment Vehicle
- Startup Companies
- Sectors in which FDI is prohibited:
- Lottery Business including Government/private lottery, online lotteries, etc.
- Gambling and Betting including casinos etc.
- Chit funds
- Nidhi company
- Trading in Transferable Development Rights (TDRs)
- Real Estate Business or Construction of Farm Houses
- Manufacturing of cigars, cheroots, cigarillos, and cigarettes, of tobacco or of tobacco substitutes.
- FDI in India in 2019-20
- Singapore emerged as the largest source of FDI in India during the last fiscal with $ 14.67 billion investments.
- It was followed by Mauritius ($ 8.24 billion), the Netherlands ($ 6.5 billion), the US ($ 4.22 billion),
- Cayman Islands ($ 3.7 billion), Japan ($ 3.22 billion), and France ($ 1.89 billion).
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