Trade Resources Industry Views Mauritius Was The Highest Foreign Direct Investor in The Indian Textile and Apparel Sector

Mauritius Was The Highest Foreign Direct Investor in The Indian Textile and Apparel Sector

In a three-year period, the small island nation of Mauritius was the highest foreign direct investor in the Indian textile and apparel sector, accounting for a little less than 50 percent of the FDI inflows into the Indian textile sector.

In the period between fiscal years 2011-12 and 2013-14, the Indian textile industry received FDI from Mauritius totalling to $215.12 million or a little less than 50 percent of the total FDI inflows into the sector.

In the three-year period, the Indian textile and apparel industry attracted overall foreign direct investment amounting to US $466.94.

According to information available on the PIB website, in fiscal year 2011-12, the Indian textile sector got an investment of $164.19 million. In 2012-13, FDI flow fell to $103.89 million, however surged to $198.86 million in 2013-14.

According to a tax treaty between India and Mauritius, capital gains can only be taxed in Mauritius and with only 3 percent in capital gains tax; hence, Mauritius is the most attractive conduit for investments into India.

Next on the list is Singapore, which poured in FDI amounting to $62.37 million in the period under review. It was recently reported that Singapore has displaced Mauritius as the number-1 FDI investor across all sectors in India.

Incidentally, Singapore too has signed a ‘Double Taxation Avoidance Agreement’ with India.

Switzerland follows with $25.62 million, followed by Luxemburg with $25.25 million, Caymen Islands another tax haven with $24.14 million, Austria with $22.06 million, Japan with 21.57 million, USA with $18.12 million and UAE $13.97 million.

In the three-year period, 35 in all countries invested in the growth story of the Indian textile and apparel sector, which is the second biggest globally after China.
 

Source: http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=166924
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Mauritius Pours Highest FDI Into Indian Textile Sector
Topics: Textile