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A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why?
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- India has preference for certain countries as regards receiving FDI
- India has double taxation avoidance agreement with Mauritius
- Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India
- Impending dangers of global climatic change prompt Mauritius to make huge investments in India
Correct Option: B
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