73% increase in FDI inflows to India in
2025: Services and manufacturing sectors to play a key role
Foreign Direct Investment (FDI) inflows to India
surged by 73% to USD 47 billion in 2025, driven by large investments in
services (finance, IT, and R&D) and manufacturing, supported by policies
aimed at integrating the country into global supply chains, according to the
Global Investment Trends Monitor released by the United Nations Conference on
Trade and Development (UNCTAD).
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The sharp rise in India’s
FDI inflows was led by strong investments in services and manufacturing
sectors.
¨
Globally foreign direct
investment also increased substantially in 2025.
¨
Data centres emerged as a
major drive of FDI trends, highlighting India’s growing appeal for global
capital.
¨
India ranked among the
top 10 major recipients of data centre investments in 2025.
¨
Foreign investment in
data centres remained concentrated in few countries, with France (1st), the
United States (2nd) and the Republic of Korea (3rd) leading.
¨
Emerging markets such as
Brazil (4th), India (7th), and Malaysia (9th) also attracted major projects.
Key Highlights of the Report
¨
The Global FDI reached an
estimated USD 1.6 trillion in 2025, marking a 14 per cent increase.
¨
A significant share of
this rise came from major global financial centres and investment hubs, which
together added over USD 140 billion.
¨
The United Kingdom,
Luxembourg, Switzerland, and Ireland accounted for the bulk of these conduit
flows.
¨
FDI flows to North
America remained broadly stable; the US recorded a 2% increase in inflows.
¨
Cross-border M&A
activity declined by 22% to USD 132 billion, though it rose sharply in
semiconductors and telecommunications.
¨
International project
finance increased by 7% to USD 218 billion, despite a 5% decline in the number
of projects.
¨
Project finance activity
increased in Syria, the Philippines, Viet Nam, and Uzbekistan, but declined in
Egypt and India.
¨
Data centres drove FDI
growth, with USD 125 billion in greenfield announcements and USD 30 billion in
international project finance.
¨
Total greenfield
investment in data centres exceeded USD 270 billion, accounting for more than
one-fifth of all global investment projects.
¨
A greenfield investment
is a form of FDI in which a foreign company establishes new operational
facilities from scratch in the host country.
¨
The rising importance of
proprietary infrastructure reflects growing competition in artificial
intelligence (AI) technologies.
UNCTAD
¨
It is a permanent
intergovernmental body established by the United Nations General Assembly,
established in 1964, and serves as the UN’s leading institution on trade and
development issues.
¨ It supports developing countries through economic and trade analysis, consensus-building, and technical assistance to promote inclusive and sustainable development.
¨ Headquarters: Geneva, Switzerland.
