Which country was the largest overseas investment destination for India during the financial year 2015–2016?

Introduction / Context:
Foreign direct investment and overseas investment patterns are important in economic and business studies. India invests capital in various countries, and some destinations have historically attracted a large share of Indian overseas investment. This question asks which country held that position in the financial year 2015 to 2016.

Given Data / Assumptions:

• The time frame is clearly specified as the financial year 2015 to 2016.
• We must choose the largest overseas investment destination for India from the options.
• The options are Mauritius, Switzerland, Saudi Arabia, and Australia.

Concept / Approach:
Historically, Mauritius has been a major route for investments between India and the rest of the world due to tax treaties and its role as a financial centre. It has often been reported as a top source and destination in investment statistics involving India. In the year mentioned, data indicated that Mauritius attracted the largest share of India's overseas investment among the listed countries. Recognising this pattern leads us to select Mauritius.

Step-by-Step Solution:
Step 1: Note that the question is about outward investment from India, not inward foreign direct investment.Step 2: Recall that Mauritius has a long history as a preferred jurisdiction for Indian businesses due to its financial and tax framework.Step 3: Consider that Switzerland is known for banking, Saudi Arabia for energy, and Australia for natural resources and education links, but in the specific year 2015 to 2016, Mauritius stood out in many reports as a leading investment destination.Step 4: Based on these patterns and reports, select Mauritius as the correct answer.

Verification / Alternative check:
Economic surveys and finance ministry data from that period indicate that a significant portion of Indian overseas investments was routed to Mauritius. Other destinations such as Singapore and the United States are also important in broader statistics, but among the options listed here, Mauritius clearly appears as the top investment destination at that time. This supports the validity of the answer.

Why Other Options Are Wrong:
Switzerland: While it is a major global financial centre, it was not identified as the largest overseas investment destination for India in that specific financial year.
Saudi Arabia: Relations involve trade in oil and energy, but it has not typically been the top destination for India's overseas investments.
Australia: There are strong links in mining, education, and services, yet the volume of Indian outbound investment in the year mentioned did not exceed that directed to Mauritius.

Common Pitfalls:
Candidates might focus only on famous financial hubs such as Switzerland or on countries with strong trade ties and ignore the specific patterns of investment flows. Another pitfall is mixing up inward and outward investment data. To answer correctly, it is essential to remember that Mauritius has historically been a central route for Indian investment and has often topped lists of investment destinations during that period.

Final Answer:
In the financial year 2015–2016, Mauritius was the largest overseas investment destination for India among the given options.