CONTEXT

• India is a key emerging economy attracting global investment amid shifting geopolitical and economic trends.
• UNCTAD’s World Investment Report 2025 offers insights into global FDI trends and India’s standing.

CONCEPT: WHAT IS FDI AND ITS SIGNIFICANCE

• FDI (Foreign Direct Investment): Investment from a foreign entity into domestic assets/businesses, enabling capital flow, tech transfer, and employment.
• Greenfield Investment: New physical projects like factories; contrasts with mergers/acquisitions.
• FDI Outflow: Investment by Indian entities into foreign countries – indicates India’s growing global footprint.

CURRENT (2024 HIGHLIGHTS FROM UNCTAD REPORT)

India’s FDI Inflows

• Ranked 15th globally in FDI inflows (up from 16th in 2023).
• FDI inflows dipped slightly to $27.6 billion from $28.1 billion in 2023 (2% drop).
• Despite dip, a surge in greenfield project announcements:
  • India ranked 4th globally with 1,080 greenfield projects.
  • Reflects high investor confidence in India’s long-term potential.

FDI Outflows

• India moved to 18th rank in global FDI outflows (up from 23rd in 2023).
• Outward investments rose to $24 billion, up from $14 billion.
• India among top 10 countries in greenfield investments abroad.
• Focus sectors: Semiconductors, basic metals, EVs.

Sectoral & Regional Trends

• Global leader: United States with $279B FDI inflows; dominated greenfield projects in semiconductors, EVs.
• China’s FDI inflows dropped 29%, falling to 4th from 2nd.
• ASEAN FDI rose 10% to $225B – a regional high.
• West Asia, especially UAE, maintained strong inflows.

Strategic Implications for India

• Sustained greenfield interest shows India’s growing manufacturing appeal under “Make in India.”
• Rising outflows signal Indian firms’ global expansion and competitiveness.
• India’s connectivity to global value chains is deepening, especially in tech and energy sectors.