India Climbs to 15th Position Among Top FDI Destinations in 2024: UNCTAD Report
New Delhi, June 19, 2025 – India has secured the 15th spot in the global rankings of Foreign Direct Investment (FDI) destinations in 2024, according to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2025. Despite a global decline in FDI flows, India managed to maintain its FDI inflows at $28 billion, showcasing resilience amid worldwide investment contraction.
Stable FDI Inflows Amid Global Downturn
Global FDI flows dropped by 11 percent in 2024, reflecting widespread economic uncertainties and evolving market dynamics. In contrast, India’s FDI inflows remained stable year-on-year at $28 billion. This steadiness is particularly notable following a significant 43 percent decline in India’s FDI inflows in 2023. Biswajit Dhar, distinguished professor at the Council for Social Development, highlighted that India’s net FDI flows, excluding repatriation, amounted to approximately $29 billion in the fiscal year 2024-25 (FY25), based on Reserve Bank of India data. While UNCTAD uses calendar year data, it aligns closely with the Reserve Bank’s methodology, underscoring the consistency of India’s investment figures.
Additionally, data from India’s Department for Promotion of Industry and Internal Trade (DPIIT) revealed that FDI equity inflows increased by 13 percent in FY25, reaching $50 billion. This growth signals renewed investor confidence in India’s market potential.
Leading Asia in Capital Expenditures for New Projects
UNCTAD’s report also emphasized India’s robust performance in greenfield project announcements, ranking fourth globally—unchanged from the previous year. These projects, which involve new investments in facilities and infrastructure, demonstrate India’s ongoing attractiveness for industrial development.
However, India slipped slightly to the fifth position in international project finance (IPF) deals in 2024, completing 97 deals, down from the second-highest number in 2023. The report noted that while greenfield projects increased strongly in India and the United Arab Emirates, IPF activity remained concentrated in mature and large emerging markets, reflecting different investment dynamics.
Notably, India outpaced other Asian countries with projected capital expenditures rising by over 25 percent to $110 billion, accounting for nearly a third of the region’s total. This substantial investment underscores India’s expanding industrial capacity and infrastructure development.
Global Context and Comparative Rankings
The United States maintained its position as the largest recipient of FDI inflows in 2024. Singapore and Hong Kong climbed one rank each, while China slipped to fourth place from second, as its inflows declined from $163 billion in 2023 to $116 billion in 2024. Developed economies attracted 53 percent of total international private equity investments, with developing Asia receiving 46 percent. Within the developing region, India emerged as the principal beneficiary, strengthening its role as an investment magnet.
India, alongside Brazil and Chile, now hosts over 30 percent of international projects in developing economies—a share that has doubled since before 2018. This growth is largely driven by ambitious renewable energy initiatives and expanding technological sectors.
Noteworthy Investments and Market Movements
The report spotlighted significant investments by multinational companies in India, including Microsoft’s $3 billion commitment to bolster its Cloud and Artificial Intelligence infrastructure. This move reflects India’s growing prominence in the global digital economy.
Conversely, Walt Disney’s strategic partial exit from India through a $3 billion merger of Star India with Viacom 18 Media resulted in a joint venture predominantly owned by Indian firms. The pharmaceutical sector also witnessed transitions, with several international investors selling operations to local companies. These developments highlight shifts in cross-border mergers and acquisitions, which have declined sharply in developing Asia.
Outlook and Significance
UNCTAD’s annual World Investment Report serves as a vital barometer of international investment trends, encompassing FDI statistics, greenfield projects, cross-border mergers and acquisitions, and project finance deals.
India’s ascent to 15th place in global FDI rankings, coupled with its leadership in greenfield investments and capital expenditures, signals its emergence as a mature and attractive destination for foreign investors. Experts interpret the steady inflows and investment activity as indicators of India’s stable policy environment and growing economic potential.
As global markets navigate challenges, India’s ability to sustain and attract investment bodes well for its economic growth trajectory and its position on the world investment map.
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