India’s FDI Landscape Strengthened by U.S. and Singapore Investments

Overview

India’s FDI Landscape Strengthened by U.S. and Singapore Investments: According to the Reserve Bank of India’s (RBI) Foreign Liabilities and Assets (FLA) Census 2024–25, the United States and Singapore together contributed over one-third of India’s total FDI inflows in the financial year 2024–25. This reflects India’s expanding economic integration with major global economies and the confidence of international investors in India’s growth prospects.

Static GK fact: The RBI conducts the FLA Census annually under the Foreign Exchange Management Act (FEMA) 1999 to collect data on cross-border investments of Indian companies.

Key Highlights of the Report

The RBI released the provisional FLA findings on October 29, 2025, revealing insights into 45,702 Indian companies engaged in foreign investments. Out of these, 41,517 firms reported either inward or outward investment activity. Notably, 7,880 companies were new participants, while 33,637 had previously reported in earlier censuses.

Nearly 75% of FDI-receiving companies were subsidiaries of foreign firms, indicating that global corporations continue to expand their operational base in India.

Major FDI Source Nations

The United States emerged as the largest investor, accounting for 20% of India’s total FDI, followed by Singapore with 14.3%. Other key contributors included Mauritius (13.3%), the United Kingdom (11.2%), and the Netherlands (9%).

The total FDI stock reached ₹68.75 lakh crore in FY25, marking a consistent rise from ₹61.88 lakh crore in FY24. This increase underscores the resilience of India’s investment environment amid global economic uncertainties.

Static GK Tip: Mauritius has historically been among India’s top FDI contributors due to the India–Mauritius Double Taxation Avoidance Agreement (DTAA).

Sectoral Distribution of FDI

The manufacturing sector dominated the inflows, receiving 48.4% of total FDI equity (market value), confirming India’s emergence as a global manufacturing hub under initiatives like Make in India.

The services sector ranked second, led by IT, digital infrastructure, and business services, highlighting the strength of India’s knowledge-driven economy.

Static GK fact: India ranks among the top 10 global destinations for FDI, as per UNCTAD’s World Investment Report.

Outward Direct Investment (ODI) Patterns

The FLA census also tracked India’s Outward Direct Investment (ODI) trends. In FY25, India’s total ODI stood at ₹11.66 lakh crore, showing a 17.9% growth compared to the previous year.

Key destinations included Singapore (22.2%), the United States (15.4%), and the United Kingdom (12.8%). The ratio of inward to outward investment narrowed to 5.9 times in March 2025 from 6.3 times the previous year, indicating Indian companies’ growing global presence.

Static GK Tip: India’s ODI policy is governed by the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004.

Investment Composition and Trends

Over 97% of the reporting companies were unlisted, yet they held the majority of India’s FDI equity capital. Around 90.5% of total FDI equity (face value) was held by non-financial firms, showing that industrial and manufacturing sectors are the core drivers of foreign investment inflows.

The findings reflect India’s balanced investment landscape, with steady FDI inflows and rising ODI outflows, both signaling economic maturity and global competitiveness.

Static Usthadian Current Affairs Table

India’s FDI Landscape Strengthened by U.S. and Singapore Investments: