Singapore remains India’s top FDI source for 7th straight year

Singapore has retained its position as the largest source of foreign direct investment (FDI) for India for the seventh consecutive year, with investments from the country surging to $14.94 billion in the financial year 2024–25, according to the latest government data.

The rise in inflows from Singapore represents a significant jump from $11.77 billion in FY24, reaffirming its importance as a key investment partner for India. Singapore accounted for approximately 19% of India’s total FDI inflows during the year.

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India attracted a total of $50 billion in overseas equity inflows in 2024–25, marking a 13% increase over the previous year. When combined with reinvested earnings and other capital, the total FDI reached $81.04 billion, reflecting a 14% year-on-year growth—the highest in the past three years.

Following Singapore, the top FDI contributors to India in 2024–25 included Mauritius: $8.34 billion, United States: $5.45 billion, Netherlands: $4.62 billion, United Arab Emirates: $3.12 billion, Japan: $2.47 billion, Cyprus: $1.2 billion, United Kingdom: $795 million, Germany: $469 million, Cayman Islands: $371 million.

This marks a continued shift from 2017–18, when Mauritius was the top source of FDI, before being overtaken by Singapore in 2018–19.

According to industry experts, Singapore’s continued dominance in FDI inflows can be attributed to its status as a global financial hub, its strong bilateral ties with India, and its critical role as a gateway for global private equity and venture capital funds targeting Indian markets.

“Singapore offers a stable and efficient investment environment, which makes it an ideal conduit for global investors looking to access India’s high-growth sectors,” said a senior economist at a leading investment consultancy.