14 May 2016

The Mauritius Loophole: The Story Of Its Origin And How India Finally Managed To Shut It

Between 2001 and 2011 nearly 40% of all FDI that came to India came from Mauritius - thanks to a loophole that exempted such investments from capital gains tax.

India and Mauritius have recently agreed to amend a 1982 treaty between the two countries that would effectively seal this loophole.

Here is the story of how (and why) the loophole came into existence.

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