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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.
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Business Standard
04-05-2025
- Business
- Business Standard
India's liberal FDI policy offers major investment opportunities: Deloitte
India's liberalised foreign direct investment (FDI) policy offers stability, predictability and sector-agnostic investment opportunities for global investors looking to tap into its vast and expanding economy, Deloitte India said on Sunday. It also said that sectors like pharmaceuticals, auto and tourism are not only FDI magnets but also engines of employment, exports, and innovation, driving India's next growth wave. India has made a significant advancement by allowing 100 per cent foreign direct investment under the automatic route in most sectors, including key areas like insurance, insurance intermediaries, tourism construction, hospitals, and medical devices. "The move signals not just openness but stability, offering global investors predictable, sector-agnostic opportunities to enter India's vast and growing economy," Rumki Majumdar, Economist, Deloitte India, said. She also said that backed by the USD 70-billion National Monetisation Pipeline and industrial corridor development across over 100 cities, India is offering plug-and-play investment-ready zones to global investors. Sectors like tourism (contributing over USD 199.6 billion to GDP) and hospitality now allow 100 per cent FDI in construction of hotels and recreation facilities, further enhancing India's image as a transparent and stable investment magnet, Majumdar said, adding this convergence of infrastructure push and FDI liberalisation is creating unprecedented opportunities across logistics, real estate, and urban development. Cumulatively, during the April-December 2024-25, FDI inflows into the country registered a growth of 27 per cent to USD 40.67 billion as against USD 32 billion in the same period of 2023-24. Further, she said that India is strengthening its role in global commerce with trade agreements covering several countries. "These agreements are removing tariff and non-tariff barriers, bolstering the Make in India thrust, and supporting India's long-term pivot from preferential trade access to becoming a pivotal player in global commerce," Majumdar added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
04-05-2025
- Business
- Time of India
India's liberal FDI policy offers huge investment opportunities for global investors: Deloitte
India's liberalised foreign direct investment (FDI) policy offers stability, predictability and sector-agnostic investment opportunities for global investors looking to tap into its vast and expanding economy, Deloitte India said on Sunday. It also said that sectors like pharmaceuticals, auto and tourism are not only FDI magnets but also engines of employment, exports, and innovation, driving India's next growth wave. #Pahalgam Terrorist Attack India much better equipped to target cross-border terror since Balakot India conducts maiden flight-trials of stratospheric airship platform Pakistan shuts ports for Indian ships after New Delhi bans imports from Islamabad India has made a significant advancement by allowing 100 per cent foreign direct investment under the automatic route in most sectors, including key areas like insurance, insurance intermediaries, tourism construction, hospitals, and medical devices. "The move signals not just openness but stability, offering global investors predictable, sector-agnostic opportunities to enter India's vast and growing economy," Rumki Majumdar, Economist, Deloitte India, said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo She also said that backed by the USD 70-billion National Monetisation Pipeline and industrial corridor development across over 100 cities, India is offering plug-and-play investment-ready zones to global investors. Sectors like tourism (contributing over USD 199.6 billion to GDP) and hospitality now allow 100 per cent FDI in construction of hotels and recreation facilities, further enhancing India's image as a transparent and stable investment magnet, Majumdar said, adding this convergence of infrastructure push and FDI liberalisation is creating unprecedented opportunities across logistics, real estate, and urban development. Live Events Cumulatively, during the April-December 2024-25, FDI inflows into the country registered a growth of 27 per cent to USD 40.67 billion as against USD 32 billion in the same period of 2023-24. Further, she said that India is strengthening its role in global commerce with trade agreements covering several countries. "These agreements are removing tariff and non-tariff barriers, bolstering the Make in India thrust, and supporting India's long-term pivot from preferential trade access to becoming a pivotal player in global commerce," Majumdar added.
Mint
01-05-2025
- Business
- Mint
Deloitte sees Indian economy picking up as tax stimulus to offset tariff woes
New Delhi: Deloitte expects India's economy to grow at a slightly faster pace in the ongoing financial year, breaking away from other international heavyweights that recently cut their projections for the country. The global consultancy sees the Indian economy growing at 6.5-6.7% in 2025-26, up from an estimated 6.3-6.5% in 2024-25, driven by strong domestic demand that could offset the impact of global trade uncertainties. India's economy treads a careful balance between shifting global trade dynamics and government measures to stimulate domestic demand, Deloitte said on Thursday in its India Economy Outlook for May. According to Deloitte, India's economic growth in FY26 will be contingent on two opposing forces—the positive impact of tax incentives aimed at growing consumer spending, and the potential impact of the uncertainty in global trade networks on the Indian economy. 'The interplay of tax stimulus and trade uncertainties could keep growth between 6.5% and 6.7% for the current fiscal year,' it added. The International Monetary Fund recently cut its FY26 forecast on India's economic growth to 6.2% from its earlier estimate of 6.5%, and slashed its global trade outlook as the US tariff war raises concerns worldwide. IMF's revision followed similar cuts by the Asian Development Bank, Moody's Analytics, and S&P Global. Moody's Analytics cut its calendar 2025 growth forecast for India to 6.1%, down by 30 basis points from its March projection, in response to the US tariffs. On Tuesday, the Union finance ministry said in its Economic Review for March that India's economy continued to show resilience and stability despite global uncertainties and trade-related disruptions, with key indicators pointing to sustained growth momentum in the final quarter of FY25. Last month, US President Donald Trump imposed a 27% reciprocal tariff on Indian goods, claiming the South Asian country levied an average 52% on US imports. However, his administration soon moved to temporarily ease duties on trading partners, including India. The US reciprocal tariff on India temporarily stands at 10% while the two nations progress towards stitching a bilateral trade agreement. 'All eyes are on the ongoing negotiations between the two nations', said Rumki Majumdar, economist, Deloitte India. 'Indian exports to the US tend to be more price-sensitive, while our imports are relatively less elastic. This makes it critical to preserve our export competitiveness,' she added. 'Depending on India's ability to negotiate with the US and come up with a bilateral trade agreement quickly, trade tariffs may potentially shave 0.1% to 0.3% off India's growth.' According to Deloitte, India's economic slowdown in FY25 was primarily due to election-driven uncertainties, unexpected rainfall in the first half of the year, and global trade volatility. However, the government's decision to forgo about Rs1 trillion in revenue through income tax cuts could see more money in the hands of the middle-class consumers, driving up consumption. 'The tax exemptions announced during the budget will increase disposable income in the hands of the young population with higher income elasticity… The projected economic expansion and immediate impact on consumption could translate to an impact of around 0.6% to 0.7% of the nation's GDP in fiscal year 2025 to 2026,' Majumdar said. 'The consumption multiplier (increase in final income driven by new injection of spending) could create economic activity worth between ₹ 6.7 trillion and ₹ 7.9 trillion in the medium term, creating a cycle of economic growth,' she said. Majumdar added that lower inflation, rangebound global oil prices, lower borrowing rates, more liquidity (due to the easier monetary policy), and a more certain global environment would help boost sentiment. First Published: 1 May 2025, 04:50 PM IST
