FDI into India jumps 43% to $13.6 billion in Q2FY25; Singapore alone contributed 50%

Foreign direct investment (FDI) in India experienced a sharp 43% year-on-year increase in the second quarter of FY25, reaching $13.6 billion, up from $9.52 billion in the same quarter last fiscal.

Singapore emerged as the largest contributor, accounting for 50% of the total inflows during this period, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).

Q2 #FDI inflows to #India rose 43% to US$13.6 bil. Over US$7.5 bil or 50% of the total comes from Singapore. SG stands with India. HC Wong pic.twitter.com/pIAz3kbU1C

— Singapore in India (@SGinIndia) December 1, 2024

For the first half of FY25, FDI inflows stood at $29.79 billion, reflecting a 45% increase compared to $20.5 billion in April-September 2023-24.

The total FDI, which includes equity inflows, reinvested earnings, and other capital, rose by 28% to $42.1 billion during the same period, compared to $33.12 billion in the previous fiscal year.

Sectors and countries driving growth

Key sectors such as services, computer software and hardware, telecommunications, and pharmaceuticals saw robust FDI activity.

The services sector alone attracted $5.69 billion in the first half of FY25, up from $3.85 billion in the corresponding period of the previous year. Other sectors, like non-conventional energy, also drew investments, with $2 billion recorded during this time.

Singapore contributed $7.53 billion, followed by Mauritius at $5.34 billion, and the Netherlands at $3.58 billion. The United States and the UAE also posted significant increases in their investments, with $2.57 billion and $3.47 billion, respectively.

However, FDI inflows from Japan and the UK declined during this period.

Maharashtra leads the way

Among Indian states, Maharashtra topped the list, receiving $13.55 billion in FDI during the April-September period of FY25.

Gujarat followed with about $4 billion, while Karnataka and Telangana attracted $3.54 billion and $1.54 billion, respectively.

Singapore's consistent support

Singapore has long been a significant partner in India's FDI journey. In FY24, the city-state was the largest contributor to India's FDI, accounting for $11.77 billion. Over the years, cumulative FDI inflows from Singapore have totalled $159.94 billion between April 2000 and March 2024.

Apart from investments, Singapore is a key trade ally, ranking as India's sixth-largest trading partner in FY24, with bilateral trade reaching $35.61 billion. This represents approximately 29% of India's total trade with ASEAN countries.