FDI inflows to India surged 73% to $47 billion in 2025, says UNCTAD

FDI inflows to India jumped 73% to $47 billion in 2025, driven by strong investments in services, IT, R&D and manufacturing, according to UNCTAD

Foreign direct investment (FDI) inflows to India jumped 73 per cent to $47 billion in 2025, driven largely by major investments in services, including information technology, research and development, and manufacturing, according to the United Nations Conference on Trade and Development (UNCTAD).

 

These investments were supported by policies aimed at boosting India’s integration into global supply chains.

 

At the same time, global foreign direct investment reached $1.6 trillion in 2025, witnessing a 14 per cent increase, the report released by UNCTAD’s Global Investment Trade Monitor on January 20 said.

 

“An increase in flows of more than $140 billion through several global financial centres played an important part. FDI flows to developed economies increased by 43 per cent to $728 billion, while flows to developing economies declined by 2 per cent to an estimated $877 billion, or 55 per cent of global flows. Three-quarters of the least-developed countries (LDCs) saw stagnant or declining inflows,” the report said.

 

 

The report said greenfield investment activity in lower-income economies declined in both the number and value of announced projects. The number of greenfield announcements fell by 10 per cent, representing around 250 fewer projects than in 2024, largely due to declines in Asia, particularly in Bangladesh and Cambodia. The total value of announced greenfield projects fell by 30 per cent to $189 billion. Project finance activity increased in Syria, the Philippines, Viet Nam and Uzbekistan, but declined in Egypt and India.

 

Data centres drove much of the FDI trend in 2025, recording an increase of $125 billion in greenfield announcements and $30 billion in international project finance. The bulk of the growth was thus through greenfield investment, contrasting with the traditionally more important role of international project finance within the telecommunications sector.

 

Total greenfield investment in data centres surpassed $270 billion, representing more than one-fifth of all investment projects. “The leading host countries for these investments were France, the United States and the Republic of Korea. Notably, emerging markets such as Brazil, Thailand, India and Malaysia also ranked among the top 10 hosts of data centre projects,” it said.