Singapore emerges as top FDI source in Apr-Dec FY26, high inflows from tax havens

New Delhi: Singapore was the top source of foreign direct investment (FDI) equity inflows in April-December FY26 at $17.6 billion, with a 37% share of the total, data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed. The US and Mauritius were the next two sources, accounting for 16% and 10%, respectively.

The FDI from offshore tax haven Cayman Islands rose five times to $2 billion from $422 million in 2024. Another tax haven from Cyprus invested $1.4 billion in India compared to $1.2 billion in 2024 while inflows from Luxembourg rose to $545 million from $352.67 million in the same period.

India received $47.87 billion of FDI equity inflows in April-December FY26 of which $7.8 billion came from the US and $4.8 billion from Mauritius. Japan and the UAE were also among the top five investor countries.


Investments from China were $6.49 million in 2025, higher than $3.73 million in 2024, according to the data whereas those from Hong Kong fell to $61.4 million from $87.7 million.

As per the data, the most attractive sectors for these funds are Computer Software & Hardware (22%) which received inflows worth $10.7 billion followed by the Services Sector (Financial, Banking, and R&D) at 18%.

Among states, Maharashtra received the highest inflows from abroad at $15.38 billion followed by Karnataka at $11.15 billion in the first three quarters of FY26.