UNCTAD report highlights that global investment rose in 2025, but capital is becoming more concentrated, more selective and more closely tied to the industries that will shape future growth.
Key Highlights of the Report
- Uneven Global Foreign Direct Investment (FDI) Growth: Global FDI rose 6% to $1.6 trillion (2025), with developed economies (+11%) far outpacing developing economies (+2%).
- The top 20 host economies received more than 80% of global inflows.
- Concentration in Strategic Sectors: Growth in greenfield investment was driven by artificial intelligence (AI) infrastructure, data centres, semiconductors, and oil & gas, while global value chain (GVC)-intensive manufacturing declined.
- FDI in India: India rose from 13th (2024) to 11th (2025) globally in inward FDI and from 20th (2024) to 18th (2025) in outward FDI.
Factors Responsible for Investment Shift Towards Developed Countries
- Strategic Investment Decisions: Investment is increasingly driven by strategic priorities, technological advantage, and economic security rather than cost efficiency.
- Industrial Policies & Subsidies: Large subsidies and incentives are attracting capital-intensive projects such as semiconductors and clean energy.
- Most developing countries can't match the subsidy programmes of major economies.
- Supply Chain Resilience: Multinational enterprises are relocating investments to countries with strong technology ecosystems, stable regulations, and lower geopolitical risks.
What Developing Countries Can Do to Attract Investment?
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