India’s FDI Inflows Surged 73 pc to $47 bn in 2025
India’s FDI inflows were led by large investments in services including finance, IT, and R&D, as well as manufacturing, supported by policies aimed at integrating India into global supply chains.
India’s FDI inflows were led by large investments in services including finance, IT, and R&D, as well as manufacturing, supported by policies aimed at integrating India into global supply chains.India’s FDI inflows were led by large investments in services including finance, IT, and R&D, as well as manufacturing, supported by policies aimed at integrating India into global supply chains. In 2024, India's FDI inflows were around $28 billion and it had ranked 15th in the global list.
India received $7 billion as data centre investments. India stood in the 7th position in data centre investments, which was led by France with $69 billion and the US with $29 billion. Data centres drove much of the FDI trend in 2025, recording an increase of $125 billion in greenfield announcements and of $30 billion in international project finance. Emerging markets such as Brazil, Thailand, India, and Malaysia also ranked among the top ten hosts of data centre projects.
The UNCTAD report found that project finance activity declined in India and Egypt, while it increased in Syria, the Philippines, Viet Nam, and Uzbekistan.
Globally, FDI flows rose by 14 per cent in 2025, reaching an estimated $1.6 trillion with an increase in flows of more than $140 billion through several global financial centres. FDI flows to developed economies increased by 43 per cent to $728 billion, while flows to developing economies declined by 2 per cent to an estimated $877 billion. Three quarters of the least developed countries (LDCs) saw stagnant or declining inflows
Going by industry trends, in 2025 data centres shaped the FDI landscape as they accounted for one-fifth of global greenfield project values. The value of newly announced projects in semiconductors increased by 35 per cent. In contrast, project numbers fell sharply by 25 per cent in tariff-exposed global value chain (GVC) intensive sectors, particularly in textiles, electronics, and machinery. International infrastructure projects also declined by 10 per cent, largely due to fewer investments in renewable energy.
Prospects for FDI flows in 2026 are highly uncertain. An increase in flows appears possible, as projections for inflation and borrowing costs in major markets suggest an easing of financing conditions. However, real project activity is likely to remain subdued, weighed down by continued geopolitical tensions, regional conflicts, policy uncertainty and economic fragmentation trends. END