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Time of India
3 days ago
- Business
- Time of India
Singapore remains India's top FDI source for 7th consecutive year
NEW DELHI: Singapore continued to be India's top source of foreign direct investment (FDI) for the seventh year in a row, with inflows touching $15 billion in 2024-25. Overall, overseas equity inflows rose by 13% to $50 billion during the last fiscal year. The total FDI, that included equity inflows, reinvested earnings and other capital, reached $81.04 billion during the last financial year. This marks a 14% rise from the previous year and is the highest FDI level in the last three years. Singapore's FDI contribution increased to $14.94 billion in 2024-25 from $11.77 billion in 2023-24, as per official government data. Singapore represented approximately 19 per cent of total inflows in 2024-25. Singapore has held the top position for FDI into India since 2018-19. Previously, in 2017-18, Mauritius was the leading source of such investments. The previous fiscal year saw Mauritius contributing $8.34 billion in foreign inflows. For 2024-25, other significant contributors included the US ($5.45 billion), the Netherlands ($4.62 billion), the UAE ($3.12 billion), Japan ($2.47 billion), Cyprus ($1.2 billion), the UK ($795 million), Germany ($469 million), and Cayman Islands ($371 million). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Soluções confiáveis para centros de dados IA Siemens Energy Read More Undo Specialists note that Singapore's status as an international financial centre, its strong bilateral relations with India, and its function as an access point for international private equity and venture capital contribute to its significant investment position. "Despite turmoil in the capital markets and uncertainties around trade, India has managed to attract huge investments, which are stable and long-term," Rumki Majumdar, Economist, Deloitte India told PTI. "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. The Double Tax Avoidance Agreement between both countries enables Singapore-based organisations to invest in India whilst reducing their total tax burden on Indian-earned income, Majumdar noted. These international investments are essential for India's infrastructure development, including ports, airports and highways, to stimulate growth. Additionally, FDI supports the improvement of the country's balance of payments and strengthens the rupee against other international currencies, particularly the US dollar. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
4 days ago
- Business
- Business Standard
Singapore leads as India's largest FDI source for seventh straight year
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 $15 billion in 2024-25. The overseas inflow grew 13 per cent to $50 billion in the last fiscal. The total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 14 per cent to $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 $14.94 billion from $11.77 billion in 2023-24, according to the latest government data. Singapore accounted for around 19 per cent of total inflows in 202425. 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.
Time of India
5 days ago
- Business
- Time of India
Singapore remains biggest FDI source for India for 7th straight year
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel For the past seven years, Singapore has maintained its status as the biggest source of foreign direct investment FDI ) in India, with an impressive inflow of nearly $15 billion recorded for the fiscal year 2024-25, numbers released on June 1 the previous fiscal year, the overall foreign investment saw a notable increase of 13 per cent, reaching $50 billion. The total FDI -- which encompasses equity inflows, reinvested earnings, and other forms of capital -- rose by 14 per cent to stand at $81.04 billion during the last financial year, marking the highest figure in three investments are critical for India to enhance its infrastructure, including ports, airports, and highways, to stimulate economic growth. Additionally, FDI plays a vital role in improving the nation's balance of payments and bolstering the value of the rupee against other global currencies, particularly the US the fiscal year 2024-25, FDI originating from Singapore surged to $14.94 billion, up from $11.77 billion in 2023-24, according to the most recent data released by the government. Singapore contributed to around 19 per cent of the total FDI inflows for the fiscal year 2024-25. Since the fiscal year 2018-19, Singapore has consistently been the leading contributor of foreign investments in India. In contrast, in 2017-18, Mauritius was the top source of FDI for India, with the country attracting $8.34 billion in foreign inflows from there during the last fiscal Mauritius, the United States contributed $5.45 billion in FDI, while the Netherlands provided $4.62 billion. The UAE, Japan, Cyprus, the UK, Germany, and the Cayman Islands made additional contributions of $3.12 billion, $2.47 billion, $1.2 billion, $795 million, $469 million, and $371 million, respectively, during the same period. Experts attribute Singapore's prominence as a global financial center, its strong bilateral relations with India, and its role as a conduit for global private equity and venture capital as key factors driving these Majumdar, an economist at Deloitte India, told news agency PTI that despite the fluctuations in capital markets and trade uncertainties, India has successfully attracted substantial investments that are both stable and long-term."Given that Asia is the second-largest region to attract foreign capital inflows, a significant portion of these funds originate from Singapore. The reasons are manifold. Firstly, as a low-tax jurisdiction with a robust legal system, Singapore serves as a strategic financial gateway to Asia," Majumdar economist further pointed out that the Double Tax Avoidance Agreement between India and Singapore enables Singapore-based firms to invest in India while minimizing their overall tax liability on income generated in Shah, a partner at IndusLaw, emphasized that the tax treaty between India and Singapore is a crucial factor propelling FDI. "The ongoing prominence of Singapore in India's FDI landscape now hinges more on genuine business advantages and regulatory benefits, along with Singapore's sophisticated financial markets, its position as a regional hub, and its political and economic stability," Shah Kumar Pandey, a partner at Shardul Amarchand Mangaldas & Co, highlighted that while Singapore will continue to play a significant role as an investor in India, the investment landscape is gradually changing."Singapore's increasing FDI into India is rooted in its function as a global financial hub, which hosts a myriad of international private equity and venture capital funds," Pandey told the news agency. These investors view India as a promising growth market, especially in sectors such as financial services, banking, insurance, business process outsourcing, logistics, computer software and hardware, trading, telecommunications, and pharmaceuticals, and use Singapore as a central base to manage and deploy capital throughout Asia.
