Foreign direct investment (FDI) in India's real estate, fintech, and semiconductor sectors is expected to surge three-fold in the financial year 2024-25, Finance Ministry sources said. Singapore, a leading investor in these sectors, is likely to play a pivotal role in this projected increase.
This significant uptick in investment is anticipated to be driven by enhanced collaboration between India and Singapore, particularly in cutting-edge sectors like artificial intelligence (AI) and semiconductors, the person said.
Singapore has consistently ranked among the top five foreign investors in India, and this trend is poised to strengthen. In 2023-24, Singapore was the largest source of these inflows with USD 11.77 billion investments into Indian markets. "Singapore wants to actively collaborate on AI and semiconductors with India," the person added, highlighting the Southeast Asian nation's growing interest in India's burgeoning technology and infrastructure landscape.
This surge in FDI aligns with India's strategic push to develop its semiconductor ecosystem and expand its fintech and real estate sectors. These investments are expected to bolster India's position as a leading destination for foreign capital, especially in high-growth sectors.
With a focus on physical infrastructure and connectivity, the influx of investment is also likely to accelerate the development of industrial parks and other critical infrastructure projects, further boosting India's economic growth in the coming years.
The Indian delegation led by Finance Minister Nirmala Sitharaman recently deliberated upon six pillars identified under the India-Singapore Ministerial Roundtable (ISMR), the Finance Ministry had said in a post on X on August 26. Along with Sitharaman, External Affairs Minister S Jaishankar, Commerce and Industry Minister Piyush Goyal and Railway Minister Ashwini Vaishnaw were present for the meeting.
ISMR is a unique mechanism established to set a new agenda for India-Singapore bilateral relations.Its inaugural meeting was held in New Delhi in September 2022. This meeting will enable both sides to review various aspects of their strategic partnership and identify new avenues to further elevate and broaden it.
The leaders also discussed plans for commemorating the 60th Anniversary of diplomatic relations between India and Singapore, alongside regional and global cooperation, including ASEAN & G20 developments.
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