Mauritian FDI into Indian textile sector close to 50 per cent

Pouring in US $ 215.12 million in the Indian textile and apparel sector from FY 2011-12 to FY 2013-14, Mauritius amounts to almost 50 per cent of the total FDI inflows into the sector. According to a tax treaty between India and Mauritius, capital gains can only be taxed in Mauritius and with only 3 per cent in capital gains tax; hence, Mauritius is the most attractive conduit for investments into India. Singapore poured in FDI amounting to US $ 62.37 million in the period under review, making it the second highest investor in the sector. Switzerland follows with US $ 25.62 million, followed by Luxemburg with US $ 25.25 million, Caymen Islands another tax haven with US $ 24.14 million, Austria with US $ 22.06 million, Japan with 21.57 million, US with US $ 18.12 million and UAE  US $ 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.