Singapore has continued to lead as India’s foremost source of foreign direct investment for the seventh straight financial year. In FY25, inflows from the island nation reached ₹14.94 billion, reinforcing its position as a key partner in India’s economic journey.
India received foreign direct investment worth ₹50 billion in FY25, registering a 13% growth over the previous year. When reinvested earnings and other capital are included, the total FDI reached ₹81.04 billion, marking a 14% increase. This is the highest FDI level recorded in the past three years, indicating sustained global investor confidence in the Indian economy.
FDI from Singapore climbed to ₹14.94 billion in FY25 from ₹11.77 billion in FY24. This continued lead began in FY19, with Singapore surpassing Mauritius as the top FDI source. The country's strategic role as a global financial hub and its strong investment treaties with India have helped maintain this position.
Read More: Net FDI in India Drops by 96% to $0.4 Billion in FY25.
Apart from Singapore, India attracted considerable foreign inflows from several other nations in FY25:
This diversified pool of contributing nations reflects India’s broad global appeal for foreign capital.
Singapore’s advantages stem from several key factors:
These elements together make Singapore a natural conduit for channelling international capital into India.
Foreign investments are vital for India’s infrastructure development, including modernising ports, airports and roads. Inflows also bolster the country’s balance of payments and support the rupee’s value against global currencies such as the US dollar.
As India pushes ahead with its ambition to become a global economic powerhouse, the steady inflow of foreign capital from countries like Singapore continues to play an essential role in funding its growth.
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Published on: Jun 2, 2025, 3:19 PM IST
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