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India's FDI Inflows Rose 44% to $39 Billion in 2025, Ranked 11th Globally: UNCTAD

By TestNeeti Editorial TeamPublished Tuesday, 7 July 2026 3 min readSource: CA - World BankArticle 5 of 21

India recorded a 44% increase in foreign direct investment (FDI) inflows to $39 billion in 2025, up from $27 billion in 2024, making it the 11th biggest FDI destination globally, according to the World Investment Report 2026 of UN Trade and Development (UNCTAD). The report said India's FDI performance was supported by an active policy agenda aimed at broadening its investment base beyond services and accelerating advanced manufacturing, citing programmes such as the Production-Linked Incentive (PLI) schemes, Make in India and Start-up India. However, it flagged a more cautious investment cycle: announced greenfield investment fell from over $111 billion in 2024 to about $74 billion in 2025. Globally, the US received $277 billion to remain the top destination, while developing Asia attracted $644 billion.

Key Facts & Details

10 points

1
India's FDI inflows rose 44% to $39 billion in 2025, up from $27 billion in 2024, per the World Investment Report 2026 of UN Trade and Development (UNCTAD).
2
The rise made India the 11th biggest FDI destination globally in 2025.
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The report credited India's active policy agenda, including PLI schemes, Make in India, Start-up India and the National Industrial Corridor Development Programme, for broadening the investment base and boosting advanced manufacturing.
4
Announced greenfield investment declined from more than $111 billion in 2024 to about $74 billion in 2025, signalling a more cautious investment cycle.
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In manufacturing, announced investment values fell from about $65 billion in 2024 to $27 billion in 2025, with the decline concentrated in capital-intensive sectors.
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Globally, the United States received $277 billion as the top destination, while developing Asia drew $644 billion, about 40% of global FDI.

Deep Dive

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Reforms cited by the report include the National Single Window System, the India Industrial Land Bank, and continued efforts to reduce regulatory burdens, alongside institutional mechanisms like Project Development Cells and the Project Monitoring Group.
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Despite the drop in manufacturing values, electronics-related manufacturing remained one of the largest manufacturing segments by both value and number of projects.
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The report noted that falling investment values with only a moderate decline in project numbers suggests smaller project sizes rather than fewer commitments.
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Developing Asia accounted for more than 70% of FDI flows to developing economies in 2025, underlining the region's dominance.

Exam Focus

Examiners may ask India's FDI inflow figure in 2025 ($39 billion), the percentage rise (44%), India's global rank (11th), the report's name (World Investment Report 2026), the publishing body (UNCTAD), or the top global destination (US, $277 billion).

Exam Relevance & Angle

FDI figures and global rankings from UNCTAD's World Investment Report are staple economy general-awareness material, and India's $39 billion inflow, 44% jump and 11th global rank are precise, testable data points for banking, SSC and civil-services examinations.

Target Exams

SBI POIBPS PORBI Grade BSSC CGLRRB NTPCUPSC CSEState PCS

Background & Context

Foreign Direct Investment (FDI) is investment made by a firm or individual in one country into business interests located in another country, typically through establishing operations or acquiring assets, and is considered a stable, long-term form of capital inflow. UN Trade and Development (UNCTAD), established in 1964, is the United Nations body dealing with trade, investment and development issues, and its annual World Investment Report tracks global and country-wise FDI trends. Greenfield investment refers to new projects built from the ground up, as distinct from mergers and acquisitions of existing assets. India has used instruments such as the Production-Linked Incentive (PLI) schemes, Make in India and Start-up India to attract investment into priority sectors like electronics and semiconductors.