Singapore leads India FDI in FY25; total hits $81 bn

Key takeaway from the latest FDI data

Singapore remained India’s largest source of foreign direct investment (FDI) for the seventh straight year in FY25 (2024-25), according to government data released on June 1. India received about $15 billion from Singapore during the year, keeping it ahead of other major investor jurisdictions. The data also shows a broader improvement in foreign investment flows during the year. Total FDI rose to a three-year high, supported by higher equity inflows and other components that are counted in the official definition.

FY25 totals: overseas inflow and overall FDI

The government data splits foreign investment into multiple aggregates. Overseas inflow grew 13% to $10.0 bn in FY25. Meanwhile, total FDI - including equity inflows, reinvested earnings and other capital - increased 14% to $11.04 bn in the last financial year. The $11.04 bn total is the highest level of FDI in the last three years, as per the same dataset.

Singapore’s FY25 inflow and year-on-year rise

FDI from Singapore rose to $14.94 bn in FY25 from $11.77 bn in FY24 (2023-24). Singapore’s share was around 19% of India’s total inflows in FY25. The data also underlines the duration of Singapore’s lead: it has been the largest source of such investments in India since FY19 (2018-19). In the context of year-to-year ranking shifts, this consistency matters because it signals stable channel flows from a single jurisdiction rather than a one-off jump from a specific source.

How other key sources ranked in FY25

Mauritius was the second-largest source in FY25, with $1.34 bn of inflows. It was followed by the United States ($1.45 bn) and the Netherlands ($1.62 bn). The UAE contributed $1.12 bn and Japan $1.47 bn during the same year. Smaller but still reported inflows came from Cyprus ($1.20 bn), the UK ($1.795 bn), Germany ($1.469 bn), and the Cayman Islands ($1.371 bn).

Snapshot table: India’s reported FDI sources in FY25

What “total FDI” includes in the government series

The FY25 total of $11.04 bn refers to “total FDI”, which includes three components: equity inflows, reinvested earnings, and other capital. This distinction matters because a rise in “total FDI” can reflect changes across these categories, not just fresh equity coming in during the year. The same dataset separately reports “overseas inflow”, which rose to $10.0 bn in FY25. The government release highlights both numbers, suggesting that FY25 saw a broader-based improvement rather than an isolated move in one component.

Historical context: Mauritius led earlier, Singapore later

The data also points to how the top source has changed over time. In FY18 (2017-18), India attracted the maximum FDI from Mauritius. Since FY19, Singapore has held the top position for seven years, based on the latest FY25 update. In FY25 itself, Mauritius remained a large contributor, but it was still behind Singapore on absolute inflows.

Longer-term shares (April 2000 to March 2024)

Alongside the FY25 numbers, the dataset also mentions cumulative shares for the period from April 2000 to March 2024. For that long window, Mauritius is cited as the largest contributor with a 25% share, followed by Singapore at 24%. Over the same period, the share of the USA is 10%, the Netherlands 7%, and Japan 6%. These longer-term shares can look different from a single-year ranking because they capture multiple cycles of inflows and shifts in country-level routing.

Why FY25’s FDI mix matters for markets and companies

For listed companies and sectors tied to private capital cycles, the FY25 rise in total FDI to $11.04 bn is a key macro datapoint because it signals the scale of foreign participation in the economy during the year. The dominance of Singapore in FY25 - and its roughly 19% share of total inflows - also highlights concentration risk in reported source jurisdictions, even when underlying investors may be global. Investors tracking policy stability and capital formation often watch whether leadership among source economies stays consistent, because sharp changes can coincide with regulatory, tax, or compliance shifts.

What to watch next

The FY25 figures set a higher base for monitoring how FY26 trends evolve, especially whether overseas inflow sustains above $10.0 bn and whether total FDI stays near the $11.04 bn level. Future government releases will also clarify whether Singapore maintains its lead beyond the seventh consecutive year. For now, the FY25 data establishes that India’s total FDI rose to a three-year high while Singapore strengthened its position at the top of the country-wise inflow table.