Mauritius has gained its place as top source of foreign direct investment or FDI into India. It has pushed Singapore to the second slot in 2014-15. Mauritius accounted for about 29 per cent of the country’s total FDI inflows last fiscal. In 2013-14, Singapore had replaced Mauritius as the top source of FDI into India. As per the data released from Department of Industrial Policy and Promotion (DIPP), India attracted USD 9.03 billion in FDI from Mauritius in 2014-15 as compared to USD 6.74 billion from Singapore. According to the analysts, FDI inflows from Mauritius had declined due to fears of the impact of GAAR.

FDI inflow of USD 6.74 billion in 2014-15 was the highest ever received from Singapore since 2006-07.
The controversial GAAR provision, which seeks to check tax avoidance by investors, has been deferred by two years. The government had earlier proposed imposing GAAR from April 1, 2015.

India needs about USD 1 trillion FDI by March 2017 to overhaul infrastructure such as ports, airports and highways and boost growth. The overall FDI into India grew by 27 per cent year-on-year to USD 30.93 billion in 2014-15.

What is the difference between FDI and FPI?

FDI

FDI is nothing but an investment made by foreigners in our country. Here the investment gives them Ownership as well as Management right. The investors engage in all sort of decision making. For example, Honda is setting up a Company in Gujarat. It is FDI.

FPI 

FPI Stands for Foreign Portfolio Management. Here the investor invests in securities such as foreign stocks, bonds, or other financial assets. Here the investment gives them only the Ownership rights. But not the Management rights. For example, when some one from UK buys share from Reliance, he or she own a share in the company and they do not get any decision making powers.

* FDI cannot be reversed easily.

* FPI can be reversed very easily.