Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Indias current FDI share country wise. 2013-14 Singapore-$5.98 billion. Mauritius- $4.95 billion. And the total FDI in India was $24.3 billion. So ? Singapore and Mauritius form about 50% of FDI in India. So what ?? Its good for our economy right. No , certainly not. Why ? Both Singapore and Mauritius are tax havens ( i.e almost 0% taxes in their country) And India has signed Double Taxation Avoidance Agreement (DTAA) which allows investors to pay tax in any one nation. So the companies pay 0 tax in those countries and get tax exemption in India. This has been a very popular route to transfer black money from India via hawala transaction and then laundered money back to India as a white genuine tax free money. (MAURITIUS ROUTE) And almost 95% of Singapores FDI and 100% of Mauritius FDI are from India coming back to India. The government has absolute majority it can easily pass General Anti Avoidance Rules (GAAR) which checks investment above Re.3 crores. But instead it is promoting 100% FDI in defence. And also thinking of promoting FDI in e-commerce. And they have framed a Special Investigating Team SIT for black money. Lol, it is like you know mulu pusinikai ya sothu la maraykurudhu The govt. promised to flush out black money it is just doing the opposite and instead promoting it. P.S : I may be against BJPs agenda but I am certainly not a hypocrite. \m/ peace.
Posted on: Thu, 05 Jun 2014 18:04:25 +0000
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