Singapore has been India’s top foreign direct investment (FDI) source for the past seven years, attracting almost $15 billion in 2024-25. According to the most recent government data, Singapore’s FDI inflows increased to $14.94 billion from $11.77 billion in the previous fiscal year. Singapore accounted for almost 19% of India’s overall FDI inflow. Singapore has regularly been the leading contributor of foreign direct investment to India since 2018-19, overtaking countries like Mauritius.
Overall, India experienced a 13% increase in overall FDI inflows, reaching $50 billion in 2024-25. Including reinvested earnings and other capital, overall FDI hit $81.04 billion, the highest level in three years. Mauritius, previously a top investor, contributed $8.43 billion in the previous fiscal year.
Other major sources of FDI included the United States ($5.45 billion), the Netherlands ($4.62 billion), the UAE ($3.12 billion), Japan ($2.47 billion), Cyprus ($1.2 billion), the United Kingdom ($795 million), Germany ($469 million), and the Cayman Islands ($371 million).
Experts attribute Singapore’s success to its standing as a worldwide financial centre, strong legal system, and strategic location as a hub for private equity and venture capital investments. The Double Tax Avoidance Agreement between India and Singapore increases its appeal.
FDI is critical to India’s economic growth, as it supports infrastructure projects and strengthens the rupee versus world currencies, particularly the US dollar.
