Singapore remains India's top FDI source for 7th consecutive year
What's the story
Singapore has retained its position as the biggest source of foreign direct investment (FDI) in India for the seventh consecutive year.
In the fiscal year 2024-25, Singapore accounted for $14.94 billion in FDI inflows to India, according to government data.
This marks a significant increase from the previous year's $11.77 billion.
Investment growth
Total FDI inflows to India rise by 14%
The total FDI inflows to India, which includes equity inflows, reinvested earnings, and other capital, grew by 14% to $81.04 billion in the last financial year.
This is the highest level of investment in three years.
The overseas inflow also saw a growth of 13%, reaching $50 billion during this period.
Market dominance
Singapore's share in total FDI inflows
Singapore's contribution to India's total FDI inflows stood at around 19% in FY 2024-25. The nation has been the largest source of such investments since FY 2018-19, overtaking Mauritius which was the top FDI source until FY 2017-18.
Global investors
Other significant FDI sources for India
Apart from Singapore, there were other major sources of FDI inflows into India in FY 2024-25.
They included the US ($5.45 billion), Netherlands ($4.62 billion), UAE ($3.12 billion), Japan ($2.47 billion), Cyprus ($1.2 billion), UK ($795 million), Germany ($469 million), and the Cayman Islands ($371 million).
These countries also contributed significantly to India's total foreign investment during this period.
Investment gateway
Singapore's role as a global financial hub
Experts say Singapore's status as a global financial hub, strong bilateral ties with India, and its position as a gateway for global private equity and venture capital, make it an ideal place for investments here.
Rumki Majumdar, an economist at Deloitte India, said despite market turmoil and trade uncertainties, India has managed to attract stable long-term investments.
Treaty impact
Tax treaty boosts India-Singapore FDI
The Double Tax Avoidance Agreement between India and Singapore also plays a crucial role in boosting FDI. It allows all Singapore-based organizations to invest in India while minimizing their overall tax burden on income earned from the country.