Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R).
Assertion (A) : During 2023 - 24, Singapore emerged as the largest source of FDI to India.
Reason (R) : The India - Mauritius Tax Treaty amendment has brought a major shift in countries as major sources of FDI to India.
Select the correct answer from the codes given below :

According to the Department for Promotion of Industry and Internal Trade (DPIIT) data for the financial year 2023-24, Singapore emerged as the largest source of Foreign Direct Investment (FDI) equity inflows into India, contributing approximately $11.77 billion. Thus, Assertion (A) is correct. The Reason (R) is also correct and provides the logical explanation; the India-Mauritius Tax Treaty amendment (specifically the 2016 protocol and the 2024 protocol introducing the Principal Purpose Test) significantly altered the investment landscape. These amendments aimed to curb treaty shopping and tax avoidance by removing capital gains tax exemptions and increasing scrutiny. This regulatory shift caused a major transition where investors moved away from the traditional Mauritius route toward jurisdictions like Singapore, which offers a more robust financial ecosystem and a Comprehensive Economic Cooperation Agreement (CECA) with India. Therefore, (R) is the correct explanation of (A).