India advanced to 15th place among global FDI destinations in 2024 with US$ 27.6 billion in inflows, despite a slight dip from 2023, reveals the recent World Investment Report 2025 by UNCTAD. FDI equity inflows reached US$ 50 billion in FY25, up 13%, while net inflows stood at US$ 29 billion.
India led South Asia and ranked fourth globally in greenfield projects. It attracted US$ 110 billion in projected capital expenditure and remained a top destination for digital and manufacturing investments. The report calls for urgent global action to boost sustainable and inclusive investment amid declining FDI prospects.
India climbed to 15th position among the world’s leading foreign direct investment (FDI) destinations in 2024, up one spot from the previous year, according to the World Investment Report 2025 by UN Trade and Development (UNCTAD). This improvement came despite a modest 1.9% decline in FDI inflows, which totalled US$ 27.6 billion, compared to US$ 28.1 billion in 2023 when India ranked 16th.
FDI equity inflows, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT), reached US$ 50 billion in 2024–25 (FY25), marking a 13% increase from the previous year.
The net FDI flows into India, excluding repatriation, stood at around US$ 29 billion in FY25.
While India’s inflows declined marginally, it remained the leading FDI destination in South Asia, accounting for the majority of the subregion’s total inflows of US$ 24.1 billion in 2024.
On the global stage, the United States retained the top position with US$ 279 billion in FDI, followed by Singapore (US$ 143 billion), Hong Kong (US$ 126 billion), and China (US$ 116 billion). Overall, global FDI fell by 11% to US$ 1.5 trillion, though headline figures reflected a 4% rise due to fluctuations in financial flows.
Greenfield project activity was particularly strong in India and the United Arab Emirates, while international project finance (IPF) remained concentrated in a few mature and large emerging markets. This disparity, according to the report, reflects a widening gap between trends in industrial investment and infrastructure development in the current global scenario.
India demonstrated notable strength in greenfield investments, ranking fourth globally with 1,080 project announcements in 2024. Despite slipping in the IPF rankings, India remained among the top five countries, securing 97 international project finance deals. Alongside Malaysia and Vietnam, India has emerged as an increasingly attractive manufacturing hub, driven by evolving trade patterns and supportive industrial policies.
Although the number of projects rose across most regions, only a handful of countries experienced a notable surge in the value of new project announcements. The report highlighted India as a standout, with projected capital expenditures increasing by over 25% to US$ 110 billion—accounting for nearly one-third of Asia’s total.
Driven by strong renewable energy programmes, India, Brazil, and Chile now host over 30% of international projects in developing economies—twice their share before 2018.
The report also noted the growing expansion of major technology companies across both developed and emerging markets, highlighting Microsoft’s US$ 3 billion investment to bolster its cloud and AI infrastructure in India.
It also pointed to Walt Disney’s partial withdrawal from its India operations through a US$ 3 billion merger of Star India with Viacom18 Media, resulting in a joint venture primarily owned by Indian companies. Additionally, several pharmaceutical assets in India previously held by foreign investors were acquired by domestic firms. These developments underscore a significant decline in cross-border mergers and acquisitions across developing Asia, the report observed.
India’s FDI outflows also improved significantly, with outward investments reaching US$ 23.8 billion in 2024, elevating the country to the 18th position globally.
In the digital economy segment, India led all developing nations in attracting greenfield investment between 2020 and 2024, drawing in US$ 54 billion. Singapore followed with US$ 12 billion, ahead of Brazil, Malaysia, and China.
UNCTAD noted that the digital economy is expanding rapidly—at an annual rate of 10–12%—outpacing global GDP growth and becoming a key driver of value creation. Between 2020 and 2024, developing nations secured US$ 531 billion in greenfield digital projects, with India receiving the largest portion. The United States was the largest source of such investments, contributing 36% of all digital greenfield projects in developing economies.
Greenfield activity in supply chain-intensive sectors—like electronics, automotive, machinery, and textiles—remained stable. Notably, four of the ten largest semiconductor megaprojects were announced in 2024, including one in India. Manufacturing growth in the country was further driven by investments in semiconductors and basic metals.
Global outlook for 2025
What began as a year with hopes of modest growth has been overshadowed by mounting trade tensions, geopolitical fragmentation, and economic uncertainty, leading to significant downgrades in FDI projections. Key areas affected include GDP growth, capital investment, trade activity, financial market stability, and investor confidence. Preliminary data from 2025 reveal record-low levels of deal and project activity.
In light of these challenges, the World Investment Report urges bold and coordinated measures to steer investment toward sustainable and inclusive development, with particular emphasis on closing gaps in the digital economy, infrastructure, and sustainable finance.
