India has improved its global ranking in foreign direct investment (FDI) by two positions, now standing as the 11th largest recipient worldwide. In 2025, the country witnessed a significant surge of nearly 44% in FDI inflows, reaching $38.89 billion, as per the United Nations Conference on Trade and Development’s ‘World Investment Report’. This marks a notable advancement from its 13th position in 2024, with inflows amounting to $27.09 billion.
The UNCTAD report highlights India’s continued enhancement as a key investment hub in 2025. This progress is attributed to a proactive policy agenda aimed at diversifying investment sectors beyond services and expediting advanced manufacturing initiatives. In contrast, developing economies experienced a modest 2% increase in FDI inflows, with Asian nations recording a 3% upsurge.
Despite a decline in FDI inflows to $104.66 billion in 2025 from $116.24 billion the previous year, China maintained its fourth position among global FDI destinations. Similarly, the United States, the leading FDI recipient globally, observed a 2% decrease in inflows, amounting to $277 billion. Notably, India attracted the largest announced greenfield investment projects worldwide in 2025.
The policy landscape in India remains focused on advanced manufacturing, infrastructure development, and deeper integration into global value chains. However, factors such as tariff uncertainties, supply chain realignments, and subdued global investment sentiments have impacted the scale of new manufacturing and infrastructure commitments, as outlined in the report.
India’s outward FDI also saw a substantial increase of 47% to $35.66 billion in 2025, compared to $24.26 billion in the previous year. This surge propelled India to the 18th position among the top home economies for FDI globally. Additionally, the value of greenfield projects announced by Indian firms overseas rose by 41% to $25.29 billion in 2025, with notable investments like Rana Group’s $10 billion commitment for an automotive manufacturing facility in the UAE.
