India experienced a remarkable 43% year-on-year increase in foreign direct investment (FDI) equity inflows, which reached $13.6 billion during the July-September quarter of FY25. This represents a significant rise from the $9.5 billion recorded during the same period last year, reflecting the growing confidence of foreign investors in the Indian economy.
Singapore emerged as the largest contributor to India’s FDI during this period, accounting for nearly half of the total inflows. This highlights Singapore’s role as a critical partner in India’s economic expansion. Over the fiscal year 2023-24, Singapore contributed $11.77 billion to India’s FDI inflows. Since April 2000, the cumulative FDI from Singapore to India has surpassed $159.94 billion, reinforcing the Southeast Asian nation’s pivotal role in shaping India’s investment landscape.
The increase in FDI is seen as a positive indicator of India’s strong economic fundamentals and the government’s efforts to create a favorable business environment through reforms and ease of doing business. As India continues to position itself as a global economic powerhouse, the growth in FDI reflects the country’s potential to attract substantial foreign investments across various sectors.
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