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FDI Inflows to India Rise by 44% to $39 Billion in 2025

Published July 8, 2026 at 12:20 AM UTC

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Foreign Direct Investment (FDI) inflows to India experienced a significant increase of 44% in 2025, reaching a total of $39 billion, according to the United Nations Conference on Trade and Development (UNCTAD). This growth underscores India's strengthening position as a major investment destination. The 2026 World Investment Report, released by UNCTAD, highlights that global FDI flows rose by 6% to $1.6 trillion in 2025, with developed economies seeing an 11% increase and developing economies a 2% rise. In South Asia, FDI inflows surged from $34 billion to $46 billion, driven primarily by investments in India. Despite the overall increase, the report notes a more cautious investment cycle, with announced greenfield investments declining from over $111 billion in 2024 to approximately $74 billion in 2025. This trend reflects a global uncertainty affecting investment decisions. India's proactive policy initiatives, such as the Production-Linked Incentive schemes, Make in India, Start-up India, and the National Industrial Corridor Development Programme, have been instrumental in attracting foreign investments. These programs aim to diversify India's investment base beyond services and accelerate advanced manufacturing. Additionally, reforms like the National Single Window System and the India Industrial Land Bank have created a more conducive environment for foreign investors. While the manufacturing sector saw a decline in announced investments, particularly in capital-intensive industries, the services sector remained resilient. Investments in 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, indicating a diversified investment landscape. Overall, India's FDI inflows in 2025 highlight the country's growing appeal to global investors, supported by strategic policy reforms and a focus on integrating into global supply chains.