Singapore Leads Foreign Direct Investment in India for FY26
Singapore emerges as top FDI source in Apr-Dec FY26, high inflows from tax havens
The Economic TimesImage: The Economic Times
In the first three quarters of FY26, Singapore emerged as the largest source of foreign direct investment (FDI) in India, contributing $17.6 billion, which is 37% of total inflows. The US and Mauritius followed, with significant investments from offshore tax havens like the Cayman Islands and Cyprus.
- 01Singapore accounted for $17.6 billion in FDI, leading all sources.
- 02The US and Mauritius contributed $7.8 billion and $4.8 billion, respectively.
- 03Cayman Islands' investment surged to $2 billion, a fivefold increase.
- 04The Computer Software & Hardware sector attracted 22% of total FDI.
- 05Maharashtra received the highest FDI inflows at $15.38 billion.
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During the period of April to December FY26, Singapore emerged as the top source of foreign direct investment (FDI) in India, with inflows totaling $17.6 billion, representing 37% of the total FDI. The United States and Mauritius followed as significant contributors, with $7.8 billion and $4.8 billion respectively. Notably, investments from offshore tax havens saw substantial increases, particularly from the Cayman Islands, which rose to $2 billion from $422 million in 2024. Cyprus also increased its investments to $1.4 billion, while Luxembourg's inflows grew to $545 million. Overall, India received $47.87 billion in FDI during this period, with key sectors attracting these investments including Computer Software & Hardware at 22% and the Services Sector at 18%. Among Indian states, Maharashtra led with $15.38 billion in FDI, followed closely by Karnataka at $11.15 billion.
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The significant inflow of FDI, particularly from Singapore and tax havens, indicates growing investor confidence in India's economy, which could lead to job creation and economic development.
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