(4 minutes read)
· Mauritius lagged behind Singapore in channelizing foreign portfolio investments (FPI) into India
· It is now occupying a third position after the US and Singapore, a fall from a predominant slot of number one a few years ago and then the second position after the US last year and now in the third slot
· Total assets from Singapore to India increased by 15.8% to Rs 3.46 trillion in 2020 (till date) over the same period a year ago, which is an increase of 13.7%
· In the meantime, total assets from Mauritius dipped by 15.8% to Rs 3.41 trillion over the same period
Mauritius lagged behind Singapore in channelizing foreign portfolio investments (FPI) into India. It is now occupying a third position after the US and Singapore, a fall from a predominant slot of number one a few years ago and then the second position after the US last year and now in the third slot.
Total assets from Singapore to India increased by 15.8% to Rs 3.46 trillion in 2020 (till date) over the same period a year ago, which is an increase of 13.7%. In the meantime, total assets from Mauritius dipped by 15.8% to Rs 3.41 trillion over the same period.
The increase in Singapore’s FPI investments in India was because that country has given greater flexibility to fund managers so that they can save cost. At the same time, Mauritius has tightened various regulatory rules in response to actions taken by the Financial Action Task Force (FATF) and the EU. This has created a negative market perception among institutional investors.
While Mauritius has yet to become FATF-complaint, South Korean and Japanese fund managers increasingly prefer Singapore or Hong Kong for routing their investments to Asian countries. The growing importance of Singapore for channelizing investments to other countries is partly due to its preeminent position as a fast developing economy.
