From which of the following nations did India receive the maximum FDI equity inflows in the fiscal year 2019-20?

Correct option is D

Correct Answer: D Singapore

Explanation:

In the fiscal year 2019-20, Singapore emerged as the top source of Foreign Direct Investment (FDI) equity inflows into India. According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), Singapore accounted for the highest share of 30% of total FDI inflows.

This significant investment can be attributed to the following factors:

• India’s Double Taxation Avoidance Agreement (DTAA) with Singapore, which provides favorable tax conditions.
• Singapore's role as a global financial hub, offering an ideal gateway for investments into India.
• Large investments in key sectors such as services, telecommunications, computer software, and hardware.
• Enhanced economic and strategic ties between the two nations under the Comprehensive Economic Cooperation Agreement (CECA).

Information Booster:

• Singapore accounted for about $14.67 billion of FDI equity inflows in FY 2019-20.
• Mauritius, traditionally a major investor, accounted for $8.24 billion, ranking second.
• The total FDI inflows into India in FY 2019-20 stood at $50 billion.
• Key sectors receiving FDI: Services, Computer Software and Hardware, Trading, and Telecommunications.
•  The Indian government has continuously liberalized its FDI policy to attract more global investments.