Singapore top source of FDI in Apr-Dec into India

Singapore was the top source of foreign direct investment (FDI) into India in the first nine months of FY21 at $15.7 billion, followed by the US at $12.82 billion with Mauritius at the third position at $3.47 billion.

The government on Thursday said that FDI equity inflows rose 40% year-on-year in the April-December of FY21 at $51.47 billion compared to $36.77 billion in the year ago period.

Officials said Gujarat garnered the highest share of FDI in the period at $21.23 billion followed by Maharashtra at $13.63 billion.


In the October 2019-December 2020 period, FDI in Gujarat was $23.8 billion and in Maharashtra, $20.89 billion.

“With ties with China warming up a bit on the border front, and strategic investment proposals being cleared, one will see these numbers only grow,” said an expert on investment issues.

India’s high foreign inflows come at a time when the global FDI collapsed in 2020, falling 42% to an estimated $859 billion from $1.5 trillion in 2019, according to UNCTAD. Such a low level was last seen in the 1990s and is more than 30% below the investment trough that followed the 2008-2009 global financial crisis, the intergovernmental body said earlier this year.

Computer software and hardware was the biggest gainer and garnered FDI worth $24.38 billion in the April-December period of FY21. Construction witnessed the second largest FDI inflows at $7.14 billion. Services sector that includes banking, financial and insurance, drew $3.85 billion of FDI during the period.

FDI equity inflows were $21.46 billion in the quarter ended December 31, 2020 with October receiving the lowest inflows at $5.33 billion in the quarter. FDI in November and December 2020 was $8.51 billion and $7.62 billion, respectively.