India Rises To 11th Largest FDI Recipient In 2025: UNCTAD Report

India moved up 2 positions to become the world's 11th-largest recipient of foreign direct investment (FDI) in 2025, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2026. FDI inflows into the country rose nearly 44% to $38.89 billion from $27.09 billion in 2024.

The improvement helped India regain ground after falling out of the global top 10 rankings 2 years earlier. The report highlighted policy initiatives aimed at expanding investment beyond services and boosting advanced manufacturing.

India FDI Inflows Rise 44% In 2025

India's FDI inflows increased significantly to $38.89 billion in 2025, compared with $27.09 billion in the previous year. According to UNCTAD, the growth reflected India's continued appeal as a major investment destination despite global economic uncertainties.

The report noted that the country's policy framework has focused on attracting investments into manufacturing, infrastructure, and emerging industries. India's performance stood out against the broader trend in developing economies, where FDI inflows increased by only 2%, while developing Asia recorded a 3% rise.

India Global FDI Ranking Improves To 11th Position

The strong growth in inflows enabled India to climb from 13th position in 2024 to 11th position among global FDI recipients in 2025. While India improved its standing, several major economies experienced softer investment inflows during the year.

China retained the fourth position despite FDI inflows declining to $104.66 billion from $116.24 billion a year earlier. The United States remained the largest global recipient of FDI, although inflows fell 2% to $277 billion.

Greenfield Investment Projects In India During 2025

Despite higher overall FDI inflows, project-level investment indicators reflected a more cautious environment. The value of announced greenfield investment projects declined to $74.12 billion in 2025 from $111.14 billion in 2024. However, India attracted the world's largest announced greenfield investment project during the year.

Alphabet Inc announced a $14.5 billion investment in a data centre project in India, while Poland-based investment activity gained prominence after Hynfra announced a $4 billion investment in Andhra Pradesh.

India Outward FDI And Investment Trends

India's outward FDI rose 47% year-on-year to $35.66 billion in 2025 from $24.26 billion in 2024. This increase helped India move up 2 places to rank 18th among the world's leading home economies for FDI.

The report noted that tariff uncertainty, supply-chain realignment, and weaker global investment sentiment influenced the pace of new manufacturing and infrastructure commitments. At the same time, India's policy focus on advanced manufacturing, infrastructure development, and integration into global value chains continued to support investment activity.

Read More: India Registers $4.7 Billion Current Account Surplus in April 2026.

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Conclusion

UNCTAD's World Investment Report 2026 showed a strong rebound in India's FDI performance during 2025, with inflows rising 44% to $38.89 billion. The increase helped the country improve its global ranking to 11th among FDI recipients.

Although announced greenfield investment values declined, India attracted the largest greenfield project globally through a major data centre investment. The report also highlighted growth in outward FDI and continued policy efforts to strengthen India's position in global manufacturing, infrastructure, and investment networks.

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