India’s Outward FDI Peaks with Significant Investments in Singapore and Growing Digital Economy

According to data from the Reserve Bank of India (RBI), Singapore attracted the most substantial outward FDI from India during the April-to-June 2025 period, with investments reaching USD 2,217.57 million. Following Singapore, the other top destinations included Mauritius, the USA, the UAE, and the UK, which received investments of USD 1,007.48 million, USD 1,004.35 million, USD 450.47 million, and USD 337.99 million respectively, as per the central bank's Overseas Investment Division.

In addition to these primary foreign markets, Indian investments were also directed toward other nations such as Germany, IFSC Gift City, the Netherlands, and Oman. A recent RBI report highlighted India's emerging status as the leading destination for greenfield investments within the digital economy among the Global South, with a remarkable total of USD 114 billion received from 2020 to 2024. This denotes India's increasing significance in the global digital marketplace and positions the country as 16th in FDI inflows globally.

Furthermore, the report noted a substantial increase in gross inward FDI in April 2025, amounting to USD 8.8 billion, a notable rise from USD 5.9 billion in March 2025 and USD 7.2 billion a year prior. The manufacturing and business services sectors played crucial roles in these inflows, contributing to nearly half of the total FDI in April. As a result, India experienced net FDI inflows of USD 3.9 billion in April 2025, which is more than double compared to the net inflows recorded in April 2024, reflecting enhanced investor trust and robust economic activity. The report also emphasized ongoing confidence from Foreign Portfolio Investors (FPIs) in the Indian market.