Context:

India has improved its position among the world’s top destinations for Foreign Direct Investment (FDI), even as actual inflows saw a minor decline, according to the World Investment Report 2025 released by the United Nations Conference on Trade and Development (UNCTAD).

Key Highlights:

• FDI Inflows:
• India attracted $27.6 billion in FDI in 2024, slightly down from $28.1 billion in 2023.
• Despite the dip, India moved up one rank to become the 15th largest FDI recipient globally, compared to 16th in 2023.
• Greenfield Investments and Project Finance:
• India ranked 4th globally in greenfield project announcements, with 1,080 projects in 2024.
• It was also among the top five economies for international project finance deals, recording 97 transactions.
• This rise signals strong investor confidence despite the drop in actual inflows.
• Global Context:
• The United States retained its position as the top FDI destination, with inflows rising from $233 billion (2023) to $279 billion (2024).
• The US also led in both greenfield announcements and project finance deals—more than double India’s count.
• China’s FDI inflows fell by 29%, dropping it to 4th place from 2nd in 2023.
• ASEAN saw a 10% increase in inflows to $225 billion, marking a new record.
• West Asia remained stable, with the UAE attracting strong inflows.
• India’s Outbound FDI:
• India’s FDI outflows rose to $24 billion in 2024, up from $14 billion in 2023.
• It improved its position from 23rd to 18th globally in outward investment rankings.
• Indian investors announced 20% more greenfield projects, placing India among the top 10 global investor countries.
• Sectoral Focus:
• India’s outbound investments concentrated on semiconductors and basic metals.
• Domestically and abroad, EV and battery assembly facilities were announced, aligning with the push for green and advanced manufacturing.

About UNCTAD:

The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body by the UN General Assembly.

·        Its goal is to help developing, least developed, and transitioning economies integrate into the global economy. It supports countries in understanding development challenges, diversifying economies, and managing financial risks.

·        UNCTAD has 195 member nations, including India, and is headquartered in Geneva, Switzerland.

·        Its key reports include the Trade and Development Report, World Investment Report, and The Least Developed Countries Report.

Conclusion:

While India saw a slight fall in actual FDI inflows, it recorded a significant surge in greenfield announcements and outbound investments. This reflects India’s increasing relevance in global value chains, particularly in high-tech and green sectors. The rise in project-level investments and expansion in outward FDI suggests a robust long-term outlook for India’s role in global capital flows.