Foreign Direct Investment (FDI) into India rose 44% to $39 billion in 2025, reinforcing the country’s status as a key global investment destination, according to the United Nations.The 2026 World Investment Report, released by the United Nations Trade and Development (UNCTAD) on Tuesday, said global FDI remained resilient during 2025, although the recovery continued to be fragile. According to the report, India continued to consolidate its position as an attractive investment destination in 2025, supported by an active policy framework aimed at diversifying investment beyond the services sector and accelerating the growth of advanced manufacturing.
FDI Inflows Rise: Details Decoded
Worldwide FDI flows increased 6% to $1.6 trillion, with developed economies recording an 11% rise and developing economies seeing a 2% increase.South Asia witnessed a sharp rise in FDI inflows, which climbed from $34 billion to $46 billion, largely driven by India, where inflows expanded to $39 billion, the report noted. At the same time, UNCTAD observed that project-related indicators suggested a more cautious investment environment despite the increase in overall inflows.The value of announced greenfield investments in India declined to around $74 billion in 2025 from more than $111 billion in the previous year, while the number of announced projects also edged lower amid an uncertain global economic backdrop.The report said India continued to roll out policy measures to attract investment into priority sectors such as electronics, semiconductors and allied manufacturing. Initiatives including the Production-Linked Incentive (PLI) schemes, Make in India, Start-up India and the National Industrial Corridor Development Programme were cited as key drivers of this effort.It added that India’s liberalised FDI regime has enhanced the country’s attractiveness to overseas investors, while institutional mechanisms such as project development cells and the Project Monitoring Group have been created to speed up approvals and facilitate project execution.According to the report, these policy initiatives helped strengthen investment momentum, particularly in manufacturing. Announced greenfield investments in the sector rose sharply between 2021 and 2024, reflecting India’s expanding role in selected segments of global value chains, including electronics manufacturing.
Momentum Moderates
However, UNCTAD observed that this momentum moderated in 2025 amid a more uncertain global environment. Although overall FDI inflows increased to $39 billion, project-related indicators pointed to a more cautious investment cycle. The total value of announced greenfield investments declined from more than $111 billion in 2024 to about $74 billion in 2025, while the number of projects registered a marginal decline.The slowdown was largely concentrated in manufacturing, where the value of announced investments fell from around $65 billion in 2024 to $27 billion in 2025. The sharpest decline was seen in capital-intensive industries. In many cases, the number of announced projects fell only slightly, indicating that projects were generally smaller in size rather than reflecting a significant reduction in investment commitments.The report said electronics manufacturing continued to rank among the largest manufacturing segments in terms of both investment value and the number of announced projects, despite moderating from the elevated levels seen in the previous year.
