India has increasingly relied on strategic global investment destinations, with nearly 60% of its outward foreign direct investment (FDI) flowing into tax havens, according to an analysis of RBI data by The Hindu. For the fiscal year 2024-25, about 56% of India’s overseas FDI was directed towards jurisdictions such as Singapore, Mauritius, UAE, the Netherlands, the United Kingdom, and Switzerland.

These low-tax jurisdictions are attractive not only for their favourable tax structures, but also for their strategic positioning in global financial networks. Indian companies often use these countries as hubs to access international markets, optimize corporate taxes, and facilitate smoother regulatory compliance across borders.

Singapore and Mauritius, in particular, have been longstanding preferred destinations for Indian outbound investments. Their robust financial ecosystems, combined with tax treaty benefits and investor-friendly regulations, make them ideal for channeling significant capital. Similarly, the UAE and the Netherlands offer strategic access to European, Middle Eastern, and African markets, enhancing trade links and global expansion opportunities.

The flow of funds to Switzerland and the UK further highlights India’s focus on diversifying its overseas portfolio, tapping into developed economies while maintaining financial efficiency. These jurisdictions provide stable, transparent frameworks for investment, which Indian companies leverage to expand operations, secure intellectual property, and strengthen international partnerships.

Analysts suggest that such FDI patterns reflect India’s dual objective: minimizing tax liabilities while maximizing strategic returns in the global marketplace. While outward FDI in tax havens often attracts scrutiny for potential tax optimization, experts emphasize its role in enhancing India’s corporate presence and economic influence internationally.

Overall, India’s outward FDI flows illustrate a careful balance of strategic planning and financial prudence. By investing in jurisdictions that combine low taxes with robust legal and financial infrastructure, Indian corporates continue to expand their international footprint, gain competitive advantages, and support long-term growth objectives.

The Upcoming IPOs in this week and coming weeks are Karbonsteel Engineering, Taurian MPS, L. T. Elevator, Galaxy Medicare, Airfloa Rail Technology, Dev Accelerator, Jay Ambe Supermarkets, Urban Company, Shringar House of Mangalsutra, .

The Current active IPO are Nilachal Carbo Metalicks, Krupalu Metals, Vashishtha Luxury Fashion, Sharvaya Metals, Vigor Plast India, Austere Systems.

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