New Delhi— India climbed to 15th place among the world’s top destinations for foreign direct investment (FDI) in 2024, up from 16th in 2023, according to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2025 released Thursday.
While total FDI inflows into India dipped slightly to $27.6 billion from $28.1 billion the previous year, the country remained the dominant FDI recipient in South Asia, accounting for the vast majority of the region’s inflows.
India stood out globally for its surge in greenfield investment activity. The country ranked fourth in greenfield project announcements, with 1,080 new projects in 2024. Greenfield projects—critical to boosting infrastructure and digital capabilities in developing economies—also saw outbound growth from India, with Indian investors initiating 20% more greenfield projects abroad, earning India a spot among the top 10 global investor countries.
India also ranked among the top five economies for international project finance deals, with 97 transactions secured during the year.
Projected capital expenditures in India jumped over 25% to reach $110 billion—nearly one-third of the total projected expenditures across Asia. This rise reflects a growing investor focus on India’s manufacturing and digital economy sectors.
According to UNCTAD, the uptick in India’s manufacturing was largely driven by semiconductor and basic metals projects. Meanwhile, the energy and gas sector retained its lead in project value, representing 14% of total investment. This sector posted the highest average project size, at $584 million, driven by large-scale infrastructure such as solar farms, wind parks, LNG terminals, and transmission systems.
The report noted that this growth was supported by India’s national energy transition strategy, which relies on blended finance and investor-friendly policies.
Globally, FDI continued to decline for the second consecutive year, falling 11% in real terms. Although nominal global FDI rose by 4% to $1.5 trillion in 2024, this increase was largely attributed to volatile conduit flows through financial hubs in Europe, rather than new productive investment.
UN Trade and Development Secretary-General Rebeca Grynspan warned that many economies are being left behind, not due to lack of potential but because investment flows tend to favor ease over necessity.
“We can change that,” Grynspan said. “If we align public and private investment with development goals and build trust into the system, today’s volatility can become tomorrow’s opportunity.” (Source: IANS)
