Singapore (27.01%), USA (17.94%), Mauritius (15.98%), Netherland (7.86%) and Switzerland (7.31%) emerge as top 5 countries for FDI equity inflows into India FY 2021-22 (2024)

Ministry of Commerce & Industry

Singapore (27.01%), USA (17.94%), Mauritius (15.98%), Netherland (7.86%) and Switzerland (7.31%) emerge as top 5 countries for FDI equity inflows into India FY 2021-22 (1) Singapore (27.01%), USA (17.94%), Mauritius (15.98%), Netherland (7.86%) and Switzerland (7.31%) emerge as top 5 countries for FDI equity inflows into India FY 2021-22 (2)


FDI Equity inflow in Manufacturing Sectors have increased by 76% in FY 2021-22 (USD 21.34 billion) compared to previous FY 2020-21 (USD 12.09 billion)

India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector

Karnataka (37.55%) and Maharashtra (26.26%) are the top 2 States in receiving FDI

Trend on Foreign Direct Investment (FDI) in India

Posted On: 28 JUL 2022 11:25AM by PIB Delhi

Singapore (27.01%) and USA (17.94%) have emerged as top 2 sourcing nations in FDI equity flows into India in FY2021-22 followed by Mauritius (15.98%), Netherland (7.86%) and Switzerland (7.31%). It may be noted that as per the UNCTAD World Investment Report (WIR) 2022, in its analysis of the global trends in FDI inflows, India has improved one position to 7th rank among the top 20 host economies for 2021.

India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector. FDI Equity inflow in Manufacturing Sectors have increased by 76% in FY 2021-22 (USD 21.34 billion) compared to previous FY 2020-21 (USD 12.09 billion).

The Government has implemented several transformative reforms under the FDI policy regime across sectors such as insurance, defence, telecom, financial services, pharmaceuticals, retail trading, e-commerce, construction & development, civil aviation, manufacturing etc.

Despite the ongoing pandemic and global developments, India received the highest annual FDI inflows of USD 84,835 million in FY 21-22 overtaking last year’s FDI by USD 2.87 billion. Earlier, FDI inflows increased from USD 74,391 million in FY 19-20 to USD 81,973 million in FY 20-21.

The Government continues to liberalize investment restrictions, eliminate regulatory barriers, nurture international relations and improve business environment. Changes are made in the FDI policy after having consultations with stakeholders including apex industry chambers, associations, representatives of industries/groups and other organizations. While foreign investments are permitted under the automatic route in most sectors/activities, due to strategic reasons certain investments are either restricted or permitted under the Government approval route through a screening mechanism as per the prescribed framework.

Top 5 sectors receiving highest FDI Equity Inflow during FY 2021-22 are Computer Software & Hardware (24.60%), Services Sector (Fin., Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (12.13%), Automobile Industry (11.89%), Trading 7.72% and Construction (Infrastructure) Activities (5.52%).

Top 5 States receiving highest FDI Equity Inflow during FY 2021-22 are Karnataka (37.55%), Maharashtra (26.26%), Delhi (13.93%), Tamil Nadu (5.10%) and Haryana (4.76%)

Top 5 sectors receiving highest FDI Equity Inflow during FY 2021-22 are Computer Software & Hardware (24.60%), Services Sector (Fin., Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (12.13%), Automobile Industry (11.89%), Trading 7.72% and Construction (Infrastructure) Activities (5.52%).

During FY 2021-22 FDI has been reported from 101 countries, whereas, it was reported from 97 countries during previous FY 2020-21.

In India FDI up to 100% is allowed in non-critical sectors through the automatic route, not requiring security clearance from the Ministry of Home Affairs (MHA). Prior government approval or security clearance from MHA is required for investments in sensitive sectors such as defence, media, telecommunication, satellites, private security agencies, civil aviation and mining, besides any investment from Pakistan and Bangladesh. All foreign investments are required to be in compliance with the applicable entry route, sectoral cap, attendant conditions, sectoral laws, Companies Act, 2013 and rules thereunder, pricing guidelines, documentation and reporting requirements.

The FDI policy regime continues to welcome all investments in the country subject to compliance of applicable entry conditions and rules/regulations.

***

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Singapore (27.01%), USA (17.94%), Mauritius (15.98%), Netherland (7.86%) and Switzerland (7.31%) emerge as top 5 countries for FDI equity inflows into India FY 2021-22 (2024)

FAQs

What is Singapore ranked In the FDI? ›

The country is ranked 18th on the AT Kearney Foreign Direct Investment Confidence Index 2022 on the most attractive economy for foreign investment. Singapore has based its economic development on a proactive strategy to attract FDI using its trade openness.

Which country received highest FDI In 2021? ›

The United States recorded the largest increase of inward foreign direct investment of all economies in 2021.

What is the FDI of Singapore In 2017? ›

Foreign direct investments (FDI) flowing into Singapore jumped from US$62 billion in 2017 to an estimated US$77 billion in 2018, according to the latest FDI figures released by the United Nations Conference on Trade and Development (UNCTAD).

What is the FDI inflow In Singapore? ›

The stock of Foreign Direct Investment (FDI) in Singapore's corporate sector stood at $2,479.0 billion as at end 2021, a 15.5% increase from $2,146.5 billion as at end 2020. The increase was largely due to higher foreign direct equity investments, which comprised paid-up capital and attributable reserves.

What is Singapore's FDI in the US? ›

Singapore's FDI in the United States (stock) was $27.3 billion in 2020, up 3.8 percent from 2019. Singapore's direct investment in the U.S. is led by manufacturing, wholesale trade, and professional, scientific, and technical services.

Why is Singapore FDI high? ›

It offers a diverse, skilled workforce and a favourable geographical location. Most importantly, its focus on innovation will ensure it is at the forefront of new technologies and future investment opportunities for many years to come.

Who is the largest foreign investor in the US? ›

China Is Largest U.S. Investor Among BRICS in 2021

Despite the size of their economies, combined BRICS' investment registered just 2.5 percent of all foreign investment stock in the United States at the end of 2021; as a group, its investment increased 21 percent from 2016.

What are the top investing countries in the US? ›

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

Who are the 5 largest investors of FDI? ›

10 Countries That Receive the Most Foreign Direct Investment
  • U.S.
  • U.K.
  • China.
  • Netherlands.
  • Ireland.
  • Brazil.
  • Singapore.
  • Germany.

What is an example of FDI in Singapore? ›

FDI in private high-rise residential units (condominiums); housing on Sentosa Island, and industrial and commercial real estate is generally not restricted.
  • Broadcasting. ...
  • Domestic media. ...
  • Financial services and banking. ...
  • Professional services.

Who has the highest FDI in Singapore? ›

Singapore's contribution to FDI is the maximum at 27%, followed by the US at 17.94% and Mauritius at 15.98%.

How has FDI helped Singapore? ›

Firms within the country have shown an ability to increase value added in production, as well as to improve the technology base of products. These companies have moved up the value chain, and the people of Singapore have achieved developed-economy-level living standards.

Why is Singapore so attractive? ›

Singapore is one of the most prosperous and stable countries in Asia. The country's stable political environment, public services convenience, diverse range of facilities, and cosmopolitan ambiance makes Singapore an increasingly attractive destination for expatriates with families.

Is Singapore doing well? ›

Singapore's economic outlook

Singapore's GDP growth in 2022 was buoyed by strong growth in domestic consumption and an upturn in international tourism expenditure, as COVID-19 restrictions were progressively eased in Singapore as well as a growing number of other Asia-Pacific economies.

What is the economy of Singapore? ›

The economy of Singapore is a highly developed free-market economy with dirigiste characteristics. Singapore's economy has been previously ranked as the most open in the world, the joint 4th-least corrupt, and the most pro-business.

Why is the US FDI so high? ›

Free-trade agreements with 20 other countries provide access to hundreds of millions of additional consumers. A strong and robust consumer market is a key reason the U.S. ranks top in the world for FDI. The U.S. hosts the most developed, flexible and efficient financial markets in the world.

Is Singapore investor friendly? ›

Singapore supports predominantly open investment policies and a robust free market economy while actively managing and sustaining Singapore's economic development.

How many US companies are in Singapore? ›

There are 4,200 American companies operating in Singapore1, with many using the city-state as their regional hub for Asia-Pacific business activities.

Is high FDI good or bad? ›

Foreign direct investment is often seen as an economic blessing for developing nations. However, new research reveals that it stimulates resource depletion, while fostering dependency on the income generated from that depletion.

Why are companies moving to Singapore? ›

Double tax agreement (DTA)

Under the DTA, companies that are engaged in international business transactions and have paid taxes in a foreign country may not be taxed for the same income in Singapore. The double tax agreement (DTA) greatly benefits organizations by keeping their tax burdens to a minimum.

Can I invest in Singapore as a foreigner? ›

Singapore is a thriving hub of business and commerce in Southeast Asia, with a highly developed economy and a robust real estate market. For foreigners looking to invest in property in Singapore, there are a range of options available, including commercial and industrial properties.

Who is the richest investor in USA? ›

Warren Edward Buffett (/ˈbʌfɪt/ BUF-it; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway.

Where does the US invest most of its money? ›

Foreign direct investment in the United States was concentrated in the U.S. manufacturing sector, which accounted for 42.4 percent of the position. There was also sizable investment in finance and insurance (12.5 percent) and wholesale trade (9.7 percent).

Who is America's most famous investor? ›

Referred to as the “Oracle of Omaha,” Warren Buffett is viewed as one of the most successful investors in history.

What is the cheapest country to invest in? ›

Vanuatu has the simplest and cheapest citizenship by investment conditions in the world. In our ranking, the country's program ranks third after Malta and Cyprus.

What is the best investment in USA now? ›

12 best investments right now
  • High-yield savings accounts.
  • Certificates of deposit (CDs)
  • Money market funds.
  • Government bonds.
  • Corporate bonds.
  • Mutual funds.
  • Index funds.
  • Exchange-traded funds (ETFs)
May 4, 2023

Where do Americans invest? ›

Nearly Half of Americans Are Invested in Stocks

Although there is risk involved, stocks may be a particularly good investment in 2022. "Stocks historically allow you to stay ahead of inflation and receive income from dividends paid to shareholders," Revelli said. There are also ways to mitigate your losses.

Who has the biggest foreign direct investment in the world? ›

Top recipients of FDI inflows worldwide in Q3 2022 were the United States (USD 86 billion), Ireland (USD 37 billion) and the United Kingdom (USD 36 billion).

Can foreigners invest in the US? ›

How To Invest In US Stocks As A Foreigner. Investors from around the world can buy and sell US stocks through brokerages that cater to foreign investors. Not every international brokerage is available in every country, so you will need to find one that specifically provides services in your country of origin.

Who is the largest investment group in the world? ›

BlackRock

BlackRock (BLK) is the largest investment firm in the world. It manages $8.6 trillion in assets as of Dec. 31, 2022.

What is an example of FDI in the US? ›

Types of Foreign Direct Investment

In a vertical FDI, a business acquires a complementary business in another country. For example, a U.S. manufacturer might acquire an interest in a foreign company that supplies it with the raw materials it needs.

Where does Singapore invest in? ›

Singapore has a diversified economy that attracts substantial foreign investment in manufacturing (petrochemical, electronics, machinery, and equipment) and services (financial services, wholesale and retail trade, and business services).

What is a real life example of FDI? ›

An example would be McDonald's investing in an Asian country to increase the number of stores in the region. Here, a business enters a foreign economy to strengthen a part of its supply chain without changing its business in any way.

Who has the highest FDI in Asia? ›

For the first time, India outpaced China and became the largest destination and source of Greenfield FDI in Asia and the Pacific in 2022, receiving US$ 60 billion of inward Greenfield FDI and being responsible for US$ 35 billion in outward FDI.

Why is China's FDI so high? ›

Local Chinese Market and Business Climate

The sheer size of China's population makes it an attractive nation for investors to commit capital to higher-end industries like healthcare, information technology, engineering, and luxury goods.

What are the disadvantages of FDI in Singapore? ›

Disadvantages for FDI include: Voluntarily very open internationally, the national economy is very dependent on exports and is therefore vulnerable to the state of the economies of its main trading partners and to the world economy.

Why Japan invest in Singapore? ›

STRENGTHENING JAPAN'S ENGAGEMENT IN SOUTHEAST ASIA

Singapore is an integral member of the ASEAN community. Many Japanese companies use Singapore as the gateway to Southeast Asia. Singapore also serves as a hub and a base for the regional operations of many Japanese companies.

Are foreigners allowed to establish their companies or invest in Singapore if so will they be allowed 100% equity? ›

By law, companies are legal persons and have rights similar to natural born persons. It means, as individuals, local and foreign companies, too, can register a Singapore company. The parent companies can own 100% equity or shareholding in the new company.

Why is Singapore so good to live? ›

Singapore is known for its outstanding quality of life, with a high standard of living and modern amenities. The healthcare system is well-developed, making it easy for expats to access the medical care they need quickly and efficiently.

Why is Singapore so happy? ›

With general political stability, low crime rates, and excellent healthcare, education, housing, recreation and transport options, it is no doubt Singapore ranks high on the list.

Why is Singapore so attractive to foreigners? ›

It is a politically stable country with a developed infrastructure and open policies for business. English is the main language in Singapore, and many foreign nationals find it convenient to invest in this country. Strong trade and investment policies also make this country a good place for foreign investment.

Is Singapore richer than USA? ›

Singapore has become the only Asian country to achieve a higher per capita gross domestic product than the United States by every measure.

Is it stressful to live in Singapore? ›

Survey data shows stress levels in Singapore remain significantly higher compared to the global average, with 86% of Singapore respondents saying they are stressed and 15% saying they struggle to cope with stress.

Is Singapore friendly with us? ›

Singapore has long standing military relations with the United States. The United States sells arms to Singapore and provides access to its bases to train the Singaporean military outside of their small island city-state.

Why is Singapore so expensive? ›

According to EIU, Singapore has the world's highest transport prices, due to strict government controls on the amount of cars. It is also among the most expensive cities for clothing, alcohol and tobacco. A person living in Singapore who wants to have a lifestyle slightly above average, is bound to spend on such items.

Is USA is a developed country? ›

The United States is a highly developed mixed economy. It is the world's largest economy by nominal GDP, and the second-largest by purchasing power parity (PPP) behind China. It has the world's seventh-highest per capita GDP (nominal) and the eighth-highest per capita GDP (PPP) as of 2022.

Is Singapore a very rich country? ›

Singapore has been named the fifth richest city in the world, and the second richest city in Asia according to the World's Wealthiest Cities Report 2023.

What is Singapore ranked as? ›

Singapore is ranked the #1 most competitive country in the world.

What is Singapore ranked in the world economy? ›

Worldwide gross domestic product in 2021 was at about 12,183 USD per capita. GDP in Singapore, on the other hand, reached USD 72,794 per capita, or 396.99 billion USD for the whole country. Singapore is therefore currently ranked 36 of the major economies.

What is the global position of Singapore? ›

About. Overview In 2021, Singapore was the number 35 economy in the world in terms of GDP (current US$), the number 19 in total exports, the number 16 in total imports, the number 6 economy in terms of GDP per capita (current US$) and the number 6 most complex economy according to the Economic Complexity Index (ECI) .

Which country is top in FDI? ›

FDI in Figures April 2023

Nevertheless, the United States and China were the top two FDI destinations worldwide in 2022, followed by Brazil, receiving peak level of inflows partly due to increased reinvestment of earnings.

What is the US ranked #1 in? ›

The U.S. economy is the world's largest in terms of gross domestic product, and also the most technologically powerful. The country's most significant exports are computers and electrical machinery, vehicles, chemical products, food, live animals and military equipment.

Is Singapore nice to live in? ›

Singapore is known for its outstanding quality of life, with a high standard of living and modern amenities. The healthcare system is well-developed, making it easy for expats to access the medical care they need quickly and efficiently.

Is Singapore the cleanest country? ›

In 2021, the island country was selected as the world's cleanest and best city in the 'Time Out Index' survey by 62% of respondents. Here are three things that Singapore does to keep the city clean.

What country is #1 in economy? ›

According to the latest available data from the World Bank, the United States of America is currently the world's largest economy, with a GDP of over $23 trillion in 2021.

What is Singapore best known for? ›

Singapore is famous for being a global financial center, being among the most densely populated places in the world, having a world-class city airport with a waterfall, and a Botanic Garden that is a World Heritage Site.

What are 5 interesting facts about Singapore? ›

Rekindle your love for the bold, the new and exciting, with these fascinating facts about the Lion City.
  • It's a city of not just one island, but 64. ...
  • It's home to the world's first night zoo. ...
  • It's a city of (man-made) waterfalls. ...
  • The locals speak Singlish, not just English. ...
  • Singapore pioneered the first F1 night race.
May 9, 2022

What is the main income of Singapore? ›

The Singapore economy is mainly driven by exports in electronics manufacturing and machinery, financial services, tourism, and the world's busiest cargo seaport.

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