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'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.
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.
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'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.
Want to track these market movements in Hindi? Visit Angel One News for daily updates and comprehensive share market news in Hindi.
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.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 7, 2026, 2:54 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
