CURRENT AFFAIRS
CURRENT AFFAIRS
Description
In the fiscal year 2023-24, India's foreign direct investment (FDI) fell by roughly 3.5% due to global economic uncertainty. Despite this, India continued to receive significant FDI from Singapore, albeit in smaller amounts, preserving its status as the largest recipient of FDI from the island nation.
FDI Trends By Country
Singapore- Despite a 31.55% drop in FDI to $11.77 billion, India remains the leading destination for Singaporean investment.
Mauritius- Despite emerging as the second-largest investor, FDI fell to $7.97 billion from $6.13 billion the previous fiscal year.
The United States- ranked third-largest investor, with $4.99 billion in foreign capital, down from $6 billion the previous year.
Factors Driving FDI Flows
Tax Advantage- Singapore's significance stems from its competitive tax policy and effective regulatory framework. Despite recent modifications, the historical double tax avoidance agreement between India and Singapore continues to give benefits.
Policy Changes- Modifications to India-Mauritius tax treaties and regulatory reforms have altered investment trends. These developments have resulted in Singapore becoming a preferred jurisdiction.
Global Economic Conditions- Geopolitical tensions and domestic policy developments continue to have an impact on FDI flows, which are expected to improve in the second half of 2024-25.
Sectorial Analysis
Contractions- Foreign direct investment inflows were contracted in industries such as services, computer software and hardware, trading, telecommunications, automobiles, pharmaceuticals, and chemicals.
Growth industries- In contrast, industries such as building (infrastructure), development, and power experienced healthy growth in inflows over the time.
Long-Term Implications And Importance Of Foreign Direct Investment
Foreign investment is critical to India's infrastructure development and economic growth, and it has a substantial impact on the country's balance of payments and currency strength. Over time, countries like Singapore, Mauritius, and the United States have played significant roles in India's FDI landscape, illustrating the intricate interaction of global economic trends and regulatory frameworks.
Welcome to Notopedia.com, your comprehensive and free online education resource that covers a vast array of competitive exams and government job opportunities in India. We understand the importance of excelling in sarkari exams, such as UPSC, IBPS, and SSC CGL, SSC CHSL which serve as gateways to esteemed government positions. Our platform offers detailed insights into exam patterns, syllabus, and previous year question papers for various exams, including NEET, JEE, CAT, CLAT, GATE and more. Whether you're preparing for banking exams like IBPS, SBI, railway recruitment or railway exams like RRB, or seeking admission to top-notch MBA and law programs, Notopedia provides you with a wealth of free study materials, mock tests, online test series and expert guidance. Stay up-to-date with the latest exam dates, results, and admit cards for exams like JEE Main, UGC NET, and CET. As you embark on your educational journey, make Notopedia your go-to destination for free mock tests, comprehensive resources, and the latest updates on sarkari results, government job vacancies, and competitive exams. Empower your learning with Notopedia and achieve your academic and career aspirations with confidence.
For more Updates and Information - Visit Notopedia's Bulletin Board
For Latest Sarkari Jobs - Visit Notopedia's Sarkari Jobs Section
For access to more than 20,000 Colleges - Visit Notopedia's College Section
For School Studies and Exams Preparation across 14 Boards - Visit Notopedia's School Section
For Comprehensive Preparation of Sarkari Job Exams - Visit Notopedia's Sarkari Exams Section
