US pushes Mauritius down to become 2nd largest source of FDI

NEW DELHI: The US has emerged because the second largest source of international direct funding into India over the last monetary yr, overtaking Mauritius.Fairness investments from the US greater than doubled to over $11 billion in 2025-26 as corporations selected to make investments immediately into India as an alternative of routing funds via a tax-friendly jurisdiction as that they had performed up to now. Singapore remained the highest source, registering a wholesome enhance. Japan noticed a hefty enhance th-anks to massive cheques within the monetary providers house.Commerce and trade minister Piyush Goyal had just lately stated that American corporations had dedicated investments of round $60 billion in current months.For the reason that modification of the tax treaty with Mauritius, Singapore has emerged as essentially the most most well-liked route for investments into India. Over the last monetary yr, it accounted for round one-third of fairness inflows.However tax havens aren’t being ignored by buyers. Cayman Islands noticed investments to India soar from $371 million in 2024-25 to $2.1 billion final yr, though officers steered it could be on account of a couple of investments.

There’s additionally a change within the sectoral allocation of FDI. Final yr noticed laptop {hardware} and software program emerge as the highest draw, overtaking providers. Which will partly have to do with the frenzy of investments in knowledge centres.Meals processing was one other sector that noticed an over five-fold soar in fairness investments, with sea transport or transport and associated actions seeing a 30 instances enhance of almost $2 billion in 2024-25.Goyal stated the government was engaged on a number of proposals to promote investments. “We’re constantly addressing challenges associated to rising self-reliance, significantly in areas the place our provide chains are critically depending on sure geographies,” he stated.