India's FDI Inflows Jump 44% to $39 Billion in 2025
India recorded a 44% increase in foreign direct investment (FDI) inflows, reaching $39 billion in 2025, according to the World Investment Report 2026 released Tuesday by the United Nations Conference on Trade and Development (UNCTAD). The report highlights that global FDI showed resilience last year, but the recovery remains fragile.
Global FDI Trends Remain Uncertain
The UNCTAD report noted that while global FDI flows rebounded moderately in 2025, geopolitical tensions, rising interest rates, and supply chain disruptions continue to pose risks. Developing economies like India benefited from investor diversification strategies, but the overall outlook is cautious.
Key Drivers of India's FDI Growth
India's robust growth, digital infrastructure expansion, and policy reforms in sectors such as technology, manufacturing, and renewable energy attracted significant capital. The government's production-linked incentive (PLI) schemes and ease of doing business improvements were cited as contributing factors.
According to UNCTAD, "India's FDI performance underscores its position as a preferred investment destination in South Asia, driven by market size and regulatory enhancements."
Comparison with Global Peers
While India's 44% growth outpaced many major economies, China saw a slight decline in FDI, and the United States remained the top recipient globally. The report emphasized that developing nations need continued support to sustain FDI momentum.
The data reflects India's growing share in global FDI, which totaled an estimated $1.5 trillion in 2025. The country now accounts for about 2.6% of global inflows, up from 1.8% in 2024.
