Now, Singapore is India's top FDI source

NEW DELHI: Singapore has overtaken Mauritius as the largest source of foreign direct investment into India, ending its long run over the top slot.

According to the latest data compiled by the department of industrial policy and promotion, FDI inflows from Singapore added up to nearly $6 billion (over Rs 35,500 crore) in 2013-14, compared with $2.3 billion in the previous year.

In contrast, FDI inflows from Mauritius almost halved to $4.9 billion (Rs 29,360 crore) last year from $9.5 billion in 2012-13.

There was a change at the third spot as well with the UK reclaiming its position with inflows of $3.2 billion in 2013-14, pipping Japan ($1.7 billion). The US retained the fifth slot with inflows of less than $1 billion.

While Mauritius remains the top source, accounting for 36% of the inflows since 2000, Singapore accounts for 12% of the cumulative inflows, with the UK placed third with a 10% share. But in 2013-14, Singapore accounted for nearly a quarter of the FDI inflows.

Investors from across the globe have preferred to route funds into India via the Mauritius route because of the tax advantages offered by the island nation located at the tip of the African continent. Singapore has, however, managed to gain some glitter in recent years as India offered similar tax sops as part of the Comprehensive Economic Cooperation Agreement, although the treaty came with some riders to ensure that only genuine investors could benefit.