A chunky USD16.23 billion (SGD22.1 billion) of foreign direct investment into India came from Singapore in the financial year that ended on March 31. According to the Indian Department for Promotion of Industry and Internal Trade (DPIIT), Singapore was the largest source of investments into India in that fiscal year, highlighting the broadening business ties between the two nations.
Singapore was followed by Mauritius (USD8.08 billion), the Netherlands (USD3.87 billion), the United States (USD3.14 billion) and Japan (USD2.97 billion) in the list foreign direct investment source nations, according to the DPIIT.
The total FDI inflow into India for the 2018-2019 financial year stood at USD44.37 billion, a steep decline from USD61.96 billion in 2017-18. However, bucking the trend, FDI in the services sector grew 36.5 per cent to USD9.15 billion in 2018-19 from USD6.7 billion the previous year, according to the DPIIT.
One of the reasons for the jump in FDI inflow from Singapore was a big-ticket investment from Walmart's Singapore outfit, which acquired a 77 per cent stake in Indian online retailer Flipkart for USD16 billion in May last year.
This is, however, not the first time Singapore has attained the top spot; it was also the top source for FDI inflows into India in 2015-2016, accounting for nearly a third of the total inflows.
The tax treaty amendments India has signed with Singapore and other nations like Mauritius have brought tax parity and led to a shake-up in FDI inflow, claim investment experts.
TOP INVESTORS 2018-19
| SINGAPORE | USD16.23b |
| MAURITIUS | USD8.08b |
| THE NETHERLANDS | USD3.87b |
| UNITED STATES of AMERICA | USD3.14b |
| JAPAN | USD2.97b |