World Investment Report 2025:
India rose a position to rank 15 among top global destinations for foreign direct investment (FDI) in 2024, despite a marginal dip in inflows at $27.6 billion, according to the UN Trade and Development (UNCTAD)’s World Investment Report 2025.
- It is an annual report published by the UN Conference on Trade and Development (UNCTAD).
- It focuses on trends in foreign direct investment (FDI) worldwide, at the regional and country levels, and emerging measures to improve its contribution to development.
Highlights of 2025 Report:
- Overall, global FDI fell by 11 percent in 2024, marking the second consecutive year of decline and confirming a deepening slowdown in productive capital flows.
- Although global FDI rose by 4 percent in 2024 to $1.5 trillion, the increase is the result of, among other factors, volatile financial conduit flows through several European economies, which often serve as transfer points for investments. When these are excluded, global FDI registered an 11% decline.
- The report also found that investment in sectors related to the Sustainable Development Goals (SDGs) in developing countries fell by 25–33% across infrastructure, renewable energy, water and sanitation, and agrifood systems.
- Only the health sector saw growth, though from a small base.
- FDI flows to the digital economy grew 14%. But 80% of greenfield projects in digital sectors in the Global South went to just 10 countries, leaving most developing nations excluded from the digital transformation.
- The United States retained its position as the top FDI destination globally, with inflows rising to $279 billion in 2024 from $233 billion in the previous year.
- China fell to fourth place with a 29 percent decline in FDI inflows, dropping from the second position it held in 2023.
- FDI in Africa surged 75%, South-East Asia saw record greenfield levels, and momentum was seen in India, the Gulf, and parts of Latin America.
- In 2024, developing economies of Asia attracted $605 billion in FDI.
- Despite a 3% dip in value from the year before, developing Asia remained the world’s leading destination for inward foreign investment; overall in 2024, Asia received 40% of the world’s total FDI and 70% of inflows to developing economies.
- Within the South Asian region, India was the top FDI recipient.
- Despite a marginal dip in inflows at $27.6 billion, India climbed up to 15th place globally in 2024, from 16th position in 2023 when it received $28.1 billion in FDI.
- There was a notable increase in greenfield project announcements, where India ranked fourth with 1,080 greenfield projects announced in 2024.
- The country was also among the top five economies in terms of international project finance deals, securing 97 such transactions.
- India also climbed in the global ranking of FDI outflows, moving to the 18th slot with $24 billion in outward investments — up from 23rd in 2023, when outflows totalled $14 billion.
