India rose to 11th among top FDI destinations in 2025: UN report

UNCTAD says FDI inflows rose to $38.89 billion in 2025 as India strengthened its appeal for advanced manufacturing, although announced greenfield investments moderated amid global uncertainty

India has climbed two places to become the world’s 11th-largest recipient of foreign direct investment (FDI), according to a UN agency’s latest trade report. Inflows surged nearly 44 per cent to $38.89 billion in 2025, helping the country recover ground lost after it slipped out of the global top 10 two years prior.

 

India had ranked 13th among global FDI recipients in 2024, with inflows of $27.09 billion.

 

“India continued to strengthen its position as a major investment destination in 2025, supported by an active policy agenda aimed at broadening its investment base beyond services and accelerating advanced manufacturing,” according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2026, released on Tuesday.

 

 

India’s rebound contrasted with a relatively subdued trend across developing economies, where FDI inflows increased just 2 per cent. Developing economies in Asia recorded a 3 per cent rise.

 

China retained its fourth position among global FDI destinations despite inflows declining to $104.66 billion in 2025 from $116.24 billion a year earlier. The United States, the world’s largest FDI recipient, also recorded a 2 per cent decline in inflows to $277 billion.

 

While overall FDI inflows into India increased, project-level indicators suggested a more cautious investment environment. The value of announced greenfield investments fell to $74.12 billion in 2025 from $111.14 billion in 2024.

 

Despite the decline, India attracted the world’s largest announced greenfield investment project in 2025. US-based Alphabet Inc announced a $14.5 billion investment in a data centre in India, topping the global list. Poland also emerged as a major source economy after Hynfra announced a $4 billion investment in Andhra Pradesh.

 

“The policy framework in India remains oriented towards advanced manufacturing, infrastructure development and deeper integration into global value chains. However, tariff uncertainty, supply chain realignment and weaker global investment sentiment are affecting the scale of new manufacturing and infrastructure commitments,” the report said.

 

UNCTAD's figures are not directly comparable with India’s official FDI data. While the Department for Promotion of Industry and Internal Trade reports FDI equity inflows, UNCTAD’s measure includes equity capital, reinvested earnings and intra-company debt on a net basis after adjusting for reverse transactions such as disinvestment.

 

The Reserve Bank of India’s (RBI’s) net FDI measure goes a step further by deducting outward direct investment by Indian firms, resulting in a lower net figure even when inward FDI remains robust.

 

India’s outward FDI increased 47 per cent to $35.66 billion in 2025 from $24.26 billion a year earlier, helping the country climb two places to 18th among the world’s top home economies for FDI, according to the UNCTAD report.

 

Based on the RBI's methodology, India's net FDI stood at $3.34 billion in 2025, up from $2.83 billion in 2024.

 

The value of announced overseas greenfield projects by Indian companies also rose 41 per cent to $25.29 billion. Rana Group's $10 billion investment announcement for an automotive original equipment manufacturing facility in the United Arab Emirates featured among the world's five largest greenfield project announcements during the year.