Singapore emerged as the largest contributor of Foreign Direct Investment (FDI) to India during the July-September quarter of the 2024-25 fiscal year, accounting for 50% of the total inflows.
FDI and FPI Trends
Foreign Portfolio Investment (FPI) inflows to India rose by 43% during the quarter, reaching $13.6 billion, as per data from the Department for Promotion of Industry and Internal Trade (DPIIT). Of this, over $7.5 billion came from Singapore, underscoring its position as a key investor in the Indian economy.
Highlighting these contributions, Singapore’s High Commissioner to India, HC Wong, expressed solidarity by stating on X, “Singapore stands with India,” while sharing the investment figures.
Singapore’s Long-Standing Role in India’s FDI
Singapore has been a consistent source of FDI for India. During 2023-24, it was the largest contributor, with inflows of $11.77 billion. Over the long term, Singapore’s cumulative FDI inflows to India from April 2000 to March 2024 reached approximately $159.94 billion.
Strengthening Bilateral Trade
Beyond investments, Singapore is a vital trade partner for India. In 2023-24, Singapore ranked as India’s sixth-largest global trade partner, with bilateral trade totaling $35.61 billion. This figure represents about 29% of India’s overall trade with ASEAN nations.
Importance of FDI for India
With India’s economic growth reliant on robust foreign investments, Singapore’s continued commitment is a significant boost, particularly during a period when FDI flows have shown signs of stagnation. These inflows not only strengthen economic ties but also contribute to India’s development goals across various sectors.
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