The government has, however, not cut the quota for foreign workers, Minister of State for Manpower Tan Chuan-Jin was quoted as saying by Xinhua.
According to government statistics, the 353,000-strong Indian community makes up 9.2 percent of the total population of Singapore.
Tan made the statement in parliament after businesses voiced concerns that they may face shortage of workers.
The government has announced several rounds of tightening for hiring of foreign workers and professionals over the past two years.