The correct answer is (a) Mauritius.
Mauritius has the highest share in cumulative FDI inflows into India. In 2020, Mauritius accounted for 25.2% of all FDI inflows into India. The United States was the second largest investor, with a share of 16.7%. Japan was the third largest investor, with a share of 10.4%. The United Kingdom was the fourth largest investor, with a share of 8.1%.
Mauritius is a popular destination for FDI because of its favorable tax regime and its strategic location. Mauritius is a member of the Commonwealth of Nations and has a strong relationship with India.
The United States is a major investor in India because of the size of the Indian market and the potential for growth. Japan is a major investor in India because of the strong economic ties between the two countries. The United Kingdom is a major investor in India because of the historical ties between the two countries.
FDI is important for India because it helps to finance economic growth and development. FDI also helps to transfer technology and skills to India.