India climbed two spots to the 11th position among global FDI recipients in 2025, recording a 44% surge in foreign direct investment inflows to $38.89 billion, according to the World Investment Report 2026 released by the UN Trade and Development (UNCTAD) . The report, titled “International Investment in a Turbulent Era,” showed that global FDI inflows rose 6% to $1.6 trillion in 2025, ending two consecutive years of decline, though the recovery remained fragile and highly uneven across regions.
India’s FDI Performance: Key Highlights
India received $38.89 billion in FDI inflows in 2025, a sharp increase from $27 billion in 2024. This 44% jump lifted the country from the 13th position in 2024 to 11th globally in 2025. The improvement came despite a subdued investment climate across developing economies, where FDI inflows grew by only 2% on average.
In terms of FDI outflows, Indian companies invested $35.66 billion abroad in 2025, up 47% from $24.26 billion in the previous year. This placed India at 18th rank among global source economies for FDI, climbing two places from the previous year. The value of overseas greenfield projects announced by Indian firms also increased by 41% to $25.29 billion.
| Indicator | 2024 | 2025 | Change |
|---|---|---|---|
| FDI Inflows | $27 billion | $38.89 billion | +44% |
| FDI Outflows | $24.26 billion | $35.66 billion | +47% |
| Global Rank (Inflows) | 13th | 11th | +2 |
| Global Rank (Outflows) | 20th | 18th | +2 |
Global FDI Trends in 2025
Global foreign direct investment rose 6% to $1.6 trillion in 2025, recovering from two successive years of decline. However, the report warned that the recovery was fragile and heavily concentrated in a narrow group of economies and sectors.
The United States remained the world’s largest FDI destination, attracting $277 billion in inflows, followed by Singapore and Hong Kong. China retained the fourth position with $104.66 billion, though its inflows declined from $116.24 billion a year earlier.
In terms of outward investment, the United States was also the top source economy with $263 billion in outflows, followed by Japan, China, Luxembourg, and Hong Kong.
Developed economies saw FDI inflows rise by 11%, while developing economies recorded only 2% growth, reaching $901 billion. Developing Asia attracted $644 billion in 2025, accounting for about 40% of global FDI and more than 70% of all flows to developing countries. The report highlighted that the world’s top 20 host economies attracted more than 80% of global FDI.
What Is Driving India’s FDI Growth?
The UNCTAD report attributed India’s strong FDI performance to an active policy agenda aimed at broadening the investment base beyond services and accelerating advanced manufacturing. Key initiatives highlighted by the report include the Production Linked Incentive (PLI) schemes, Make in India, Start-up India, and the National Industrial Corridor Development Programme.
India has complemented these flagship programmes with structural reforms to create a more investor-friendly environment. The National Single Window System, the India Industrial Land Bank, and continued efforts to reduce regulatory burdens have played a significant role. The report also noted that India’s reformed FDI regime has reinforced openness to foreign investors, while institutional mechanisms such as Project Development Cells and the Project Monitoring Group have helped facilitate approvals and project implementation.
The PLI scheme, launched in 2020 across 14 sectors, has been a major catalyst. By March 2025, it had attracted over ₹1.76 lakh crore in committed investment, generated production worth ₹16.5 lakh crore, and created more than 12 lakh jobs. The electronics sector, in particular, saw a 146% jump in production, with mobile phone exports surging 775%.
One of the largest single FDI announcements came from Alphabet, Google’s parent company, which committed $14.5 billion to build a gigawatt-scale AI data centre in Visakhapatnam, Andhra Pradesh. This was among the world’s largest greenfield project announcements in 2025. India also ranked among the top 10 global destinations for data centre investments, alongside France, the United States, and South Korea.
Greenfield Investments: A Note of Caution
Despite the surge in FDI inflows, the report sounded a cautionary note on project-level indicators. The total value of announced greenfield investments in India declined from over $111 billion in 2024 to about $74 billion in 2025. The decline was most pronounced in manufacturing, where announced investment values fell from approximately $65 billion to $27 billion.
The report explained that the slowdown was concentrated in capital-intensive sectors, where investment values fell significantly even as project numbers declined only moderately. This suggests that investors are committing to smaller project sizes rather than pulling back entirely. Electronics-related manufacturing, however, remained one of the largest segments by both value and number of projects, despite the decline from the previous year’s high.
This pattern reflects a broader global trend. The report noted that geopolitical tensions, trade policy uncertainty, and supply chain realignment are making investors more cautious about large-scale manufacturing commitments. For India, the challenge lies in translating policy momentum into sustained, large-ticket investment commitments across a wider range of sectors.
India’s Rising Outbound Investment
India’s outward FDI crossed the $35 billion mark for the first time in 2025, reflecting the growing global ambitions of Indian companies. The 47% increase in outflows to $35.66 billion was among the sharpest rises among major source economies.
Indian companies are increasingly investing in overseas greenfield projects. The value of such announcements rose 41% to $25.29 billion. The Rana Group’s announcement of a $10 billion automotive original equipment manufacturing facility in the United Arab Emirates was among the world’s five largest greenfield projects announced during the year. Poland also emerged as a significant destination for Indian investment, with Hynfra announcing a $4 billion investment in Andhra Pradesh, reflecting deepening India-Europe economic ties.
The rise in outward FDI signals that Indian multinational enterprises are expanding their global footprint, particularly in manufacturing, automotive, and technology sectors. This trend aligns with India’s broader economic strategy of deeper integration into global value chains.
About UNCTAD and the World Investment Report
The United Nations Conference on Trade and Development (UNCTAD) is a permanent intergovernmental body established by the UN General Assembly in 1964. It is headquartered in Geneva, Switzerland and has 195 member states. UNCTAD’s mandate is to support developing countries in accessing the benefits of a globalized economy more fairly and effectively. It reports to the UN General Assembly and the Economic and Social Council but has its own membership, leadership, and budget.
The current Secretary-General of UNCTAD is Rebeca Grynspan of Costa Rica, the first woman to lead the organization. Among UNCTAD’s flagship publications is the World Investment Report (WIR) , which has been published annually since 1991. Each edition provides analysis of global and regional FDI trends, examines a selected theme in depth, and includes a statistical annex with country-level data on FDI flows and stocks. The WIR 2026, the 36th edition, focuses on the theme “International Investment in a Turbulent Era.” Other major UNCTAD publications include the Trade and Development Report, the Least Developed Countries Report, and the Digital Economy Report.
Key Takeaways
- The World Investment Report 2026, themed “International Investment in a Turbulent Era,” was released by UNCTAD on 7 July 2026.
- India ranked 11th globally in FDI inflows in 2025, with a 44% surge to $38.89 billion, up from $27 billion in 2024.
- India ranked 18th globally in FDI outflows, with a 47% increase to $35.66 billion.
- Global FDI inflows rose 6% to $1.6 trillion in 2025, though the recovery was highly uneven and concentrated in a few economies and sectors.
- The United States remained the top FDI destination with $277 billion and the top source economy with $263 billion in outflows.
- UNCTAD was established in 1964, is headquartered in Geneva, Switzerland, has 195 member states, and is currently led by Secretary-General Rebeca Grynspan.
- India’s FDI growth was driven by policy initiatives including PLI schemes, Make in India, the National Single Window System, and a liberalized FDI regime covering most sectors under the automatic route.
