Which country is India’s largest source of foreign direct investment?
- A.Mauritius
- B.Singapore
- C.United States
- D.Japan
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Explanation
The correct answer is Singapore. The city state is India’s largest source of foreign direct investment, with cumulative inflows of roughly USD 194.68 billion between April 2000 and March 2026, and its institutional investors, among them GIC and Temasek, hold significant positions across the Indian economy. This standing is one reason the Union Finance Minister’s engagements there centre on capital markets, taxation and digital financial connectivity. Option A, Mauritius, was for years the leading route for investment into India and is still a major one, which is exactly why it is the most tempting wrong answer here. Option C, the United States, and option D, Japan, are both large investors and important economic partners, but neither tops the table of cumulative inflows. For objective papers, hold Singapore at the first place and Mauritius immediately behind it as the pair most often swapped in questions.