FDI Inflows to India Rise 44 PC to $39 Bn in 2025
With $39 billion FDI inflows against $27 billion in 2024., India stood at the 11th position in the global ranking in 2025 against 13th position in the previous year.
Chennai: Foreign Direct Investments into India rose 44 per cent to $39 billion in 2025, while FDI outflows grew 50 per cent to $36 billion. Despite the growth in FDI inflows, project indicators pointed to a more cautious investment cycle as announced greenfield investment declined from more than $111 billion in 2024 to about $74 billion in 2025, as per the World Investment Report by UNCTAD.
With $39 billion FDI inflows against $27 billion in 2024., India stood at the 11th position in the global ranking in 2025 against 13th position in the previous year.
FDI outflows too grew by 50 per cent to $36 billion as India stood at 18th position against 20th position with $24 billion in 2024.
India continued to strengthen its position as a major investment destination in 2025, supported by an active policy agenda aimed at broadening its investment base beyond services and accelerating advanced manufacturing.
Announced greenfield investment in manufacturing increased sharply from 2021 to 2024, reflecting the country’s growing role in selected segments of GVCs, including electronics.
However, in 2025 this trend was interrupted by a more uncertain global environment. Although total FDI inflows rose to $39 billion, project indicators pointed to a more cautious investment cycle. The total value of announced greenfield investment declined from more than $111 billion in 2024 to about $74 billion in 2025, while the number of projects fell marginally.
The slowdown was concentrated in manufacturing, where announced investment values fell from about $65 billion in 2024 to $27 billion in 2025. The decline was most visible in capital-intensive sectors where investment values fell significantly. In many cases, project numbers declined only moderately, suggesting smaller project sizes rather than fewer commitments. Electronics-related manufacturing remained one of the largest manufacturing segments by value and number of projects, despite the decline from the previous year’s high.
Investment in services remained resilient. Greenfield investment was broadly stable, exceeding manufacturing investment. Information and communication technologies (ICT) became the largest sector in 2025, reflecting continued expansion in digital infrastructure and technology-related activities.
Financial services also recorded renewed activity. The policy framework in India remains oriented towards advanced manufacturing, infrastructure development and deeper integration into GVCs.
However, tariff uncertainty, supply chain realignment and weaker global investment sentiment are affecting the scale of new manufacturing and infrastructure commitments.
Globally, foreign direct investment (FDI) flows rose by 6 per cent, to $1.6 trillion. Inflows increased by 11 per cent in developed economies and by 2 per cent in developing economies. The outlook for 2026 is affected by significant downside risks owing to trade policy uncertainty, geopolitical tensions and conflicts.
