{"id":36041,"date":"2026-06-06T09:38:00","date_gmt":"2026-06-06T05:38:00","guid":{"rendered":"https:\/\/gbc1.net\/?p=36041"},"modified":"2026-06-11T12:27:52","modified_gmt":"2026-06-11T08:27:52","slug":"india-registered-record-94-5b-of-fdi-during-fy2526","status":"publish","type":"post","link":"https:\/\/gbc1.net\/index.php\/2026\/06\/06\/india-registered-record-94-5b-of-fdi-during-fy2526\/","title":{"rendered":"India Registered Record $94.5B of FDI During FY2526"},"content":{"rendered":"\n

On 4 June 2026, India’s Department for Promotion of Industry and Internal Trade (DPIIT<\/a>) released its investment data, showing that India registered a record USD 94.5 billion of Foreign Direct Investment (#FDI<\/a>) during Fiscal Year (FY) 2025-2026. This figure represents a robust 17.3% growth year-on-year. <\/p>\n\n\n\n

Singapore remains the largest source of FDI with USD 19.8 billion. Compared to FY 2024-2025, the United States of America (USA) overtook Mauritius with an investment of USD 11.2 billion. Mauritius slid to third position by routing funds worth USD 6.6 billion to India.<\/p>\n\n\n\n

The excellent performance of India can perhaps be best appreciated when viewed via the geopolitical lens, as many US multinationals adopt a #ChinaPlusOne<\/a> strategy by shifting some manufacturing from China to India. At the moment, the USA sees China as a near-peer strategic rival, while it views India as an ally with the heft to counteract China, or at least reduce its dependence on the ‘Factory of the World.’<\/p>\n\n\n\n

No.<\/th>Country<\/th>FY2526
$B<\/th>		FY2425
$B<\/th>		Delta
%<\/th><\/tr><\/thead>
1<\/td>Singapore<\/td>19.8<\/td>14.9<\/td>+32.9<\/td><\/tr>
2<\/td>USA<\/td>11.2<\/td>5.5<\/td>+103.6<\/td><\/tr>
3<\/td>Mauritius<\/td>6.6<\/td>8.3<\/td>-20.5<\/td><\/tr>
4<\/td>Japan<\/td>3.7<\/td>2.5<\/td>+48.0<\/td><\/tr>
5<\/td>Netherlands<\/td>3.4<\/td>4.6<\/td>-26.1<\/td><\/tr><\/tbody><\/table>
Top Sources of FDI into India in FY2526<\/figcaption><\/figure>\n\n\n\n

Analysts note that since the change in the Double Taxation Avoidance Treaty (#DTAT<\/a>) between India and Mauritius became effective in 2016, the Mauritius International Financial Center (IFC) lost much of its shine and is no longer the preferred financial gateway into India. Both Mauritius and Singapore act mostly as financial conduits for India, but the same treaty change did not appear to dent the edge of Singapore. <\/p>\n\n\n\n

Singapore is recognized as an International Financial Center (#IFC<\/a>), whereas Mauritius is perceived as a regional financial center since Singapore offers a wider array of value-added services and is thus a jurisdiction of greater substance than Mauritius. As Mauritius lost its fiscal advantage, investors naturally redirected to jurisdictions that offer more sophistication and convenience.<\/p>\n\n\n\n

Economists point out that one must distinguish between Gross and Net FDI. Although India registered USD 94.5 billion in Gross FDI, USD 35.7 billion came as non-equity components such as reinvested earnings and intra-company transactions, leaving a Net FDI of USD 58.8 billion. In other words, out of the Gross FDI, 62% was fresh capital, while 38% came through reinvested profits and other capital flows.<\/p>\n\n\n\n

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