India the happiest about the Mauritius’s exiting FATF ‘grey list’. Here’s why.

Indians are reportedly the happiests about Mauritius’s exiting the FATF ‘grey list’.

According to the Indian media, this development would indirectly impact the foreign investment from Mauritius to India.

The foreign direct investment into India from Mauritius had declined during the financial year April 2020-March 2021 after Mauritius was subjected to increased monitoring by the FATF.

“However, this should improve this year with this recent development and given the comfort of the investors to invest into India from Mauritius,” Dhaval Jariwala, a Mumbai- based chartered accountant who has many foreign funds as his clients, was quoted as saying.

Mauritius, which has been one of the largest contributors of FDI in India, has been recently losing out to jurisdictions like Singapore, Cayman Island, etc., partly because of amendment in the tax treaty with India and also due to it being put on the FATF grey list.

Mauritius was put on the list in February 2020.