India continues to remain as a favourite destination for FDI even though tax related concerns remain as a deterrent for the foreign investors
FDI inflows into India remained stagnant at USD 44 billion.
India’s outward foreign flows declined by about one third.
Cross-border merger and acquisition deals have become important tools in the hands of the foreign multinational enterprises to foray into the rapidly-growing Indian market.
The report has also noted that signing of tax treaty with Mauritius would have contributed to decline in instances of round tripping of FDI.