Datanomics: Will US replace Singapore as India’s top FDI destination? | Economy & Policy News

The White House recently listed investment commitments from India worth more than $330 billion. It included a $15 billion steel plant announced by Essar Group’s Mesabi Metallics in Iowa. Though not directly mentioned in the list, US President Donald Trump announced in March that Reliance Industries was investing $300 billion to establish an oil refinery in Brownsville, Texas. These commitments may further boost India’s outward FDI to the US, if fully realised. The US accounted for over 10 per cent of India’s total outward FDI eight times in the past 10 years. It peaked at around 19 per cent in 2021-22. In absolute terms, investments in 2025-26 were the highest in the past decade, totaling at $5.7 billion. Overall, investments from India stood at around $47 billion that year, which was also a 10-year high. FDI outflows to the US were 12 per cent of the total from India in FY26.  The US was the biggest destination after Singapore for FDI from India in 2025-26. The gap with Singapore was over $7 billion.