Singapore continued to be India’s largest source of foreign direct investment (FDI) for the last seven years, as the country received the highest inflows of about USD 15 billion in 2024-25.
The overseas inflow grew 13 per cent to USD 50 billion in the last fiscal. The total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 14 per cent to USD 81.04 billion during the last financial year. It is the highest in the last three years.
FDI from Singapore in 2024-25 increased to USD 14.94 billion from USD 11.77 billion in 2023-24, according to the latest government data. Singapore accounted for around 19 per cent of total inflows in 2024–25. Since 2018-19, Singapore has been the largest source of such investments in India. In 2017-18, India attracted the maximum FDI from Mauritius.
In the last fiscal, the country received USD 8.34 billion in foreign inflows from Mauritius. During 2024-25, Mauritius was followed by the US (USD 5.45 billion), the Netherlands (USD 4.62 billion), the UAE (USD 3.12 billion), Japan (USD 2.47 billion), Cyprus (USD 1.2 billion), the UK (USD 795 million), Germany (USD 469 million), and Cayman Islands (USD 371 million).
According to experts, Singapore’s position as a global financial hub, combined with strong bilateral ties and its role as a gateway for global private equity and venture capital, makes it a natural conduit for investments into India.
Rumki Majumdar, Economist, Deloitte India, said despite turmoil in the capital markets and uncertainties around trade, India has managed to attract huge investments, which are stable and long-term. “Given that Asia is the second largest region to receive foreign capital inflows, a large part of the funds come from Singapore. There are quite a few reasons for that. One, being a low-tax jurisdiction and with a robust legal framework, Singapore is considered the strategic financial gateway to Asia,” she said.
Double Tax Avoidance Agreement between the two nations helps all Singapore-based organisations to invest in India and reduce the total tax burden on income earned from India, Majumdar added.
Lokesh Shah, Partner, IndusLaw, said the India-Singapore tax treaty was one of the major drivers of FDI. “Singapore’s continued dominance in India FDI now relies more on genuine business and regulatory advantages, Singapore’s sophisticated financial market, its status as a regional hub, and political and economic stability,” Shah said.
Rudra Kumar Pandey, Partner, Shardul Amarchand Mangaldas & Co, said that while Singapore will continue to be a significant and active investor in India, the landscape is gradually evolving. “Singapore’s rising FDI into India is anchored in its role as a global financial hub, home to a large number of international private equity and venture capital funds,” Pandey said.
These investors see India as a high-growth destination, particularly in sectors like financial services, banking, insurance, business process outsourcing, logistics, computer software and hardware, trading, telecommunications and pharmaceuticals and use Singapore as a key base to manage and deploy capital across Asia, he added.
Foreign investments are crucial for India to overhaul its infrastructure like ports, airports and highways to push growth. FDI also helps improve the country’s balance of payments situation and strengthen the rupee’s value against other global currencies, especially the US dollar.
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