Bangalore Stock Exchange：India's ability to absorb gold suddenly： Foreign investment decreases by more than 100 billion US dollars, but Singapore is still obsessed

It is probably Singapore, which may be optimistic about India.

On March 25, Singapore Prime Minister Li Xianlong publicly emphasized that Singapore and India are long -term partners, and bilateral cooperation between the two countries is currently progressing smoothly.Li Xianlong also wrote on social media: "May the relationship between Singapore and India continue to develop and develop."

Indian Prime Minister Modi and Singapore Prime Minister Li Xianlong (source: Social Media)Bangalore Stock Exchange

Singapore also proves what Li Xianlong said with practical actions -it has been the largest foreign direct investor in India for many years, surpassing the United States and Japan.Even today, Singapore is still unbalanced even if Foreign Direct Investment (FDI) has fallen sharply.

Compared with the inflow of FDI in India, Singapore is far ahead and is still overweight.(Source: Indian Industry and Internal Trade Promotion Department (DPIIT))

Following the year -on -year decrease of 27%year -on -year, after the investment amount of the United States, Mauritius, the Netherlands and other countries decreased significantly, the direct investment in India's foreign directors this year continued to decline.

Data from the Central Bank of India (India Reserve, RBI) in March show that in the first 10 months of the 2023-24 fiscal year (April 2023 to January 2024), India's foreign direct investment was US $ 25.53 billion, and the outflows were from the outflow of outflows, and the outflow was to the outflows.$ 10.1 billion.In contrast, the inflow of FDI in the same period last year was US $ 36.75 billion, and the outflow was $ 11.75 billion.

This means that the FDI flowing into India has decreased by $ 11.22 billion, a decrease of 30.53%year -on -year.

The Indian side blame the reasons for the decline in the slowdown of the global economy, leading to a significant reduction in foreign direct investment in India.However, Singapore still stands out of a bunch of countries and continues to join for the largest source of the Indian FDI.

Specifically, in the first 6 months of 2023-24 (April to September 2023), Singapore reached 5.22 billion US dollars to India's FDI, which is more than Merrustus (US $ 2.95 billion) and third place than the second place.Japan (US $ 2.9 billion) has more up.

Singapore, investing in India's "springboard"

Investing in India, which flows from Singapore, is actually from local companies in Singapore. Many of them are foreign companies with business in Singapore.

These companies choose to register a company in Singapore due to factors such as preferential tax rates and business environment, and use this as a springboard before investing in India.

A typical example is Wal -Mart.In fiscal 2018-19, Singapore's FDI against India reached US $ 16.23 billion, accounting for one-third of India's entire fiscal year (US $ 44.37 billion).The main reason is that in this fiscal year, Wal -Mart made a US $ 16 billion investment in Singapore's e -commerce company Flipkart, which occupied nearly half of the Indian online retail industry.

This year, Flipkart received another investment from Singapore's parent company, with a amount of 111 million US dollars.And these investment naturally counted on the FDI of Singapore to India.Varanasi Wealth Management

As of the FDI situation of India's fiscal year in March this year (source: source of India)

Prior to Singapore, Mauritius topped the list of Indian FDI for many years.

First, because Mauritius has a considerable number of Indians in the country, accounting for 67%of the total population, they are keen to invest in India; the second is that India and Mauritius have signed a 33 -year preferential tax agreement.Investing in India in the name of the company can get a lot of tax benefits.

In May 2016, in order to combat overseas money laundering, the Indian government suspended the tax agreement with Mauritius and began to levy capital for capital to invest in Morimus, India.Of course, in December of the same year, India also amended the tax agreement with Singapore and began to levy capital for Singapore Corporation.

Under the small tax conditions, Singapore stood out with a good business environment.

In recent years, Singapore's FDI trend at the source: GOI

As a partner of Pwa's Yongdao, Bohra is engaged in India's business in Singapore.He said: "Mauritius has lost its original advantage. Many international companies have found that Singapore is more strategic. They choose to come here to register for the establishment of a company and then invest in FDI from India."

Singapore is one of the countries with the lowest corporate tax rate in the world. The corporate income tax rate is 17%, which is far lower than the 25%of India.At the same time, Singapore is still an international financial center, with rich talents, and its capital market is connected to the international market.

Indian media pointed out that the reason why Singapore can become a springboard for investing in India is another advantage that it has stable infrastructure, good public security and developed living standards.Investors around the world are more willing to stay here with their families.

The sovereign fund is also optimistic about IndiaJaipur Investment

In addition to foreign companies, Singapore sovereign funds and local companies have also vigorously betrayed India in recent years.

According to the "Japan Economic News" report, the Singapore sovereign wealth fund GIC executives have revealed last year that GIC is adjusting the asset allocation to respond to the changes in international supply chain under inflation environment and geopolitical risks.They are considering the gradual transfer of investment targets to emerging countries such as India.

Temasek, another major sovereign fund in Singapore, also clearly stated that he hopes that in the next three years, it will deploy 3 billion to 5 billion US dollars in India in the next three years. The goal is to transform banks, financial business, medical care, industry, technology, consumer departments, and energy transformation.

In 2015, Li Xianlong took a selfie with Modi who visited Singapore.(Source: the official website of the Indian Embassy in Singapore)

Earlier, Singapore Airlines signed an agreement with the Indian giant Tata Group to acquire 25%of Indian airlines at a price of $ 250 million.Singapore Airlines CEO Wu Junpeng said he plans to build India into a new aviation hub.

"You can see how much potential in India is. The Indian market is growing, but the service is serious." Wu Junpeng said.

On January 7 this year, at the Tamilnadbon Global Investor Conference held in India, a number of Singaporean companies and India Tamilnadbon reached a $ 3.7 billion investment plan.

These plans include but not only: Capita Investment Investment in southern India, Zhennai Investment, is used to build commercial parks, logistics, warehousing and data centers; robot company LionSbot will cooperate with local universities in India, establish training laboratories, hardware and softwareDesign courses.

Singapore companies also promise to create more employment opportunities in India.Quanjian Crayon Data plans to create 150 direct employment and 350 assistant employment opportunities in India in the next three years.

The Singapore Ministry of Trade and Industry (MTI) and the Singapore Enterprise Development Bureau said that these investment will be implemented in several years, covering high -growth areas such as sustainable development and infrastructure, as well as technical and technological cooperation.

Although India continues to increase, Singapore's companies and institutions have to face some business problems, such as India's general high tax rate.

According to India's Economic Times, this year, startups, such as Pine Labs, Zepto, Meesho, etc., are located in the United States or Singapore. In order to facilitate the promotion of the business, they want to apply to the headquarters to India. HoweverThey face India's high taxes.

Earlier, Wal -Mart cut it out and moved to India in order to allow its mobile payment Phonepe to pay nearly $ 1 billion in taxes to the Indian government.

Agra Wealth Management