India received highest FDI from Singapore in 2023-24, says Govt data

India received the highest foreign direct investment (FDI) from Singapore in 2023-24, despite a 3.5% contraction in overall capital inflows due to global economic uncertainties, according to the latest government data.

Although FDI from Singapore dipped by 31.55% to $11.77 billion in 2023-24, it remained the largest source of FDI for India.

Decline in FDI from major countries

During the last fiscal year, FDI equity inflows decreased from several major countries, including Mauritius, the U.S., the U.K., the UAE, the Cayman Islands, Germany, and Cyprus. In contrast, investments from the Netherlands and Japan increased.

Overall FDI trends and sectoral impact

FDI equity inflows in India declined by 3.49% to $44.42 billion in 2023-24, compared to $46.03 billion in 2022-23. The total FDI, which includes equity inflows, reinvested earnings, and other capital, declined marginally by one percent to $70.95 billion during 2023-24 from $71.35 billion in 2022-23.

In 2021-22, the country received the highest ever FDI inflows of $84.83 billion. Sectorally, inflows contracted in services, computer software and hardware, trading, telecommunications, automobiles, pharmaceuticals, and chemicals.

In contrast, construction (infrastructure) activities, development, and power sectors registered healthy growth in inflows during the period under review.

Mauritius and U.S. FDI contributions

FDI from Mauritius declined to $7.97 billion in 2023-24 from $6.13 billion in 2022-23. The U.S. was the third-largest investor in India in 2023-24, with $4.99 billion in foreign investments, down from $6 billion in 2022-23.

It was followed by the Netherlands ($4.93 billion), Japan ($3.17 billion), the UAE ($2.9 billion), the U.K. ($1.2 billion), Cyprus ($806 million), Germany ($505 million), and the Cayman Islands ($342 million).

Historical FDI data and country contributions

According to the data, Mauritius accounted for 25% of the total FDI received by India from April 2000 to March 2024, amounting to $171.84 billion, while Singapore's share was 24%, totaling $159.94 billion.

The U.S. accounted for 10% of total overseas investments, with $65.19 billion during this period.