Abstract

Tax havens, exemplified by jurisdictions like Mauritius, have played a pivotal role in the global economy, particularly concerning Overseas Capital Flows (FDI) inflows into India. These offshore financial centers offer tax advantages and financial confidentiality, attracting multinational corporations and investors alike. Mauritius, through its Double Taxation Avoidance Agreement (DTAA) with India, has become a prominent conduit for FDI into the country. This abstract provides a concise overview of the multifaceted role of tax havens in the global economy and their impact on FDI inflows in India. It touches upon how tax havens facilitate investment, round-tripping, and wealth management, while also highlighting concerns about tax avoidance and the evolving international efforts to address these issues. The future role of tax havens is shaped by ongoing reforms and global tax standards, making them a subject of continuous significance in the world of finance and investment.

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