India's Position in Global Foreign Direct Investment (FDI)
India has improved its ranking to become the 11th-largest recipient of FDI globally, as per the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2026.
- FDI Inflows:
- FDI inflows in India surged by nearly 44% to $38.89 billion in 2025.
- India was ranked 13th with $27.09 billion in FDI inflows in 2024.
- Comparison with Global Trends:
- Developing economies saw a modest 2% increase in FDI inflows.
- Developing economies in Asia recorded a 3% rise.
- China retained its fourth position with a decline in inflows to $104.66 billion from $116.24 billion in 2024.
- The US saw a 2% decline, recording $277 billion in FDI.
- Investment Projects and Policies:
- India's policy is focused on advanced manufacturing and infrastructure development.
- Despite a decline in announced greenfield investments to $74.12 billion in 2025 from $111.14 billion in 2024, India attracted the world's largest greenfield investment project by Alphabet Inc. worth $14.5 billion.
FDI Metrics and Comparisons
- UNCTAD vs. Official Indian Data:
- UNCTAD includes equity capital, reinvested earnings, and intra-company debt.
- India's Department for Promotion of Industry and Internal Trade reports only FDI equity inflows.
- The Reserve Bank of India (RBI) further deducts outward investments, resulting in a lower net figure.
India's Outward FDI Growth
- Outward FDI grew by 47% to $35.66 billion in 2025 from $24.26 billion in 2024.
- India ranked 18th among top home economies for FDI.
- Announced overseas greenfield projects by Indian companies increased by 41% to $25.29 billion.
- Rana Group's $10 billion investment in the UAE was among the top five global greenfield project announcements.
