UPSC 2010 › Indian Economy › External Sector & Balance Of Payments

1 question · 2010 · answers as per the UPSC key

Take test Free Study this topic: External Sector and Trade
All years of External Sector & Balance Of Payments · Full UPSC 2010 paper
UPSC 2010 · Q30 · Indian Economy › External Sector & Balance Of Payments · Save

A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why?

(a) India has preference for certain countries as regards receiving FDI
(b) India has double taxation avoidance agreement with Mauritius
(c) Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India
(d) Impending dangers of global climatic change prompt Mauritius to make huge investments in India
Show answer
Answer: (b) India has double taxation avoidance agreement with Mauritius