Singapore Retains Top Spot as India’s Largest FDI Source in FY25
Singapore has once again emerged as India’s largest source of Foreign Direct Investment (FDI) for the seventh consecutive fiscal year, reinforcing its pivotal role in India’s economic expansion. For the fiscal year 2024–25, Singapore contributed a total of $14.94 billion, surpassing its previous year’s investment of $11.77 billion.
Singapore FDI India
Accounting for roughly 19% of India’s total FDI inflows in FY25, Singapore’s investment trajectory showcases sustained confidence in India’s economic fundamentals. The island nation’s strategic location, strong financial institutions, and advantageous tax treaties continue to make it a preferred channel for routing global investments into India.
This enduring partnership is not just a financial relationship but also reflects broader economic cooperation, with Singapore serving as a launchpad for international investors targeting the Indian market.
Foreign Investment Trends
India saw a notable 13% year-on-year increase in overseas equity inflows, which rose to $50 billion. Including reinvested earnings and other capital flows, total FDI climbed to $81.04 billion—marking a three-year high.
Following Singapore, Mauritius ranked second with $8.34 billion in FDI, while the United States contributed $5.45 billion. The Netherlands ($4.62 billion) and the United Arab Emirates ($3.12 billion) rounded out the top five sources. These inflows supported a wide array of sectors, notably services, manufacturing, infrastructure, and emerging technologies.
FY25 Inflows and Economic Outlook
The growth in FDI reflects increasing investor confidence in India’s business environment, bolstered by economic reforms and proactive government initiatives. FY25’s total FDI of $81.04 billion represents a 14% jump over FY24, reaffirming India’s appeal as a high-potential investment destination.
India’s efforts to improve ease of doing business, digitize approval systems, and offer production-linked incentives across key industries have played a central role in attracting foreign capital. As the country continues to expand its digital economy and infrastructure base, foreign investments are expected to remain robust.
Singapore’s continued leadership as an FDI source not only enhances bilateral economic ties but also accelerates India’s growth momentum in a globally competitive landscape.
