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India Hot FDI Destination but Tax Concerns Remain
June 15, 2017
While India continues to enjoy the status of a prime FDI destination, the tax concerns remain a deterrent for the investors still. This revelation was made in a UNCTAD report recently, which also mentioned that the FDI inflows dropped by 15% in 2016 as they stood at $443 billion. Although three sub-regions took a hit from the impact, South Asia was unaffected.
According to UNCTAD’s World Investment 2017 report, economies such as India, China, and ASEAN may get better FDI prospects in 2017 through improved economic outlook. As for India, it may need to revisit its taxation system. For instance, the tax treaty it signed with Mauritius in May 2016 may have contributed to smaller round-tipping FDI.
