Finance minister, Arun Jaitley has said that there was no 'serious apprehension' of investors shifting base to other tax havens and he sees no depletion in FDI flows, due to re-drawing of decades-old tax treaty with Mauritius – the biggest source of foreign investments into India. As markets reacted cautiously to India expanding its crackdown on tax treaties, Jaitley told news agency PTI, that eventually, markets were to operate on inherent strength of Indian economy. <br/><br/>He also said that the amendment would also help check round-tripping of funds and boost the domestic consumption. Stating that the original Mauritius treaty created 'a tax-incentivised route' at a time when India was looking at foreign investments to boost economy, he said the economy has become strong enough and 'now those who earn must pay taxes.'

Finance minister, Arun Jaitley has said that there was no 'serious apprehension' of investors shifting base to other tax havens and he sees no depletion in FDI flows, due to re-drawing of decades-old tax treaty with Mauritius – the biggest source of foreign investments into India. As markets reacted cautiously to India expanding its crackdown on tax treaties, Jaitley told news agency PTI, that eventually, markets were to operate on inherent strength of Indian economy. He also said that the amendment would also help check round-tripping of funds and boost the domestic consumption.