Given below are two statements, one is labelled asAssertion (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:

1. A

   Both (A) and (R) are true, but (R) is not the correct explanation of (A).

   (a) claims that both Assertion (A) and Reason (R) are true, but asserts that (R) is not the correct explanation for (A). However, this option is incorrect because the amendment to the India-Mauritius Tax Treaty directly impacts how FDI flows are routed and reported, thereby explaining the shifts in top FDI source countries. Therefore, stating it is not the correct explanation overlooks the intrinsic analytical link between the treaty amendment and FDI source dynamics.

2. B

   (A) is false, but (R) is true.

   (b) claims that Assertion (A) is false, but Reason (R) is true. This option is incorrect because government data for 2023-24 confirms that Singapore indeed remained the largest source of Foreign Direct Investment into India. Thus, dismissing the assertion as false contradicts official economic statistics.

3. C

   Both (A) and (R) are true and (R) is the correct explanation of (A).

   (c) claims that both Assertion (A) and (R) are true and that (R) is the correct explanation of (A). Singapore consistently maintains its position as the leading source of FDI for India, and recent policy adjustments, including the India-Mauritius Tax Treaty protocol amending the 'Principal Purpose Test', have significantly influenced international investment routes and capital inflows into India. This option correctly identifies the factual accuracy of both statements as well as their causal relationship.

4. D

   (A) is true, but (R) is false.

   (d) claims that Assertion (A) is true, but Reason (R) is false. This is incorrect because the Reason is also a valid factual development concerning international taxation agreements and their structural impact on FDI routing into India. Hence, treating the reason as false ignores well-documented international financial treaty amendments.

Summary. Official key is (c) because both the assertion regarding Singapore's top FDI status in 2023-24 and the reason regarding the India-Mauritius Tax Treaty amendment are factually correct. Furthermore, the treaty changes provide the exact context and causal explanation for shifts in international investment patterns into India. Students often confuse the direct explanatory link between tax treaties and FDI routing, but official economic analyses validate this relationship. Therefore, option (c) is the only fully accurate choice.