New Delhi, June 21, 2025:
India has risen one position to rank 15th among the world’s top destinations for foreign direct investment (FDI) in 2024, according to the latest World Investment Report 2025 released by the United Nations Conference on Trade and Development (UNCTAD).

Despite a slight decline in total FDI inflows to $27.6 billion in 2024, compared to $28.1 billion in 2023, India managed to climb up from 16th to 15th position. This movement signals resilience in India’s investment ecosystem, particularly in light of global economic uncertainties and geopolitical tensions.

Greenfield Projects Surge Despite FDI Dip

While the total investment figure dipped slightly, investor confidence in India’s long-term potential remained strong. UNCTAD’s data shows that India ranked fourth globally in greenfield project announcements, with 1,080 projects announced in 2024 — a clear sign that foreign investors are betting on fresh capacity creation and long-term presence in the Indian economy.

Greenfield investments typically involve building new facilities from scratch, and are seen as more impactful than mergers or acquisitions in terms of job creation, infrastructure development, and economic upliftment.

"The rise in greenfield projects indicates that foreign investors see India as a long-term strategic destination, particularly in manufacturing, services, and digital infrastructure," said a senior official at the Department for Promotion of Industry and Internal Trade (DPIIT).

India Among Top Five in Project Finance Deals

In addition to greenfield investments, India was also listed among the top five economies in terms of international project finance deals, securing 97 such transactions in 2024. These deals often fund large-scale infrastructure and public-private partnership (PPP) projects across energy, transport, urban development, and more.

This highlights India's growing prominence as a hub for infrastructure investment and development finance, especially in sectors that require long-term capital and regulatory clarity.

FDI Landscape: Global Context and India's Outlook

The marginal decline in India’s total FDI inflow mirrors a global trend of cautious investment amid rising inflation, supply chain disruptions, and persistent geopolitical crises. However, India's performance stands out in contrast to several other emerging economies that witnessed sharper contractions.

According to UNCTAD, global FDI flows decreased by 2% in 2024, but countries that were able to channel investments into real assets and economic reforms remained attractive to global investors.

India’s rise in the FDI rankings is seen as an endorsement of key policy reforms, including:

• The Production-Linked Incentive (PLI) schemes across critical sectors,

• Ease of doing business initiatives such as digitized compliance and reduced red tape,

• Expansion of logistics and digital infrastructure,

• Aggressive promotion through India’s foreign missions and investor outreach programs.

Sectoral Highlights Driving Investments

The rise in greenfield and project finance activity suggests robust interest in the following key sectors:

• Renewable Energy: Solar and wind projects attracted strong backing from global clean energy firms.

• Electronics and Semiconductors: New manufacturing units planned in states like Gujarat, Karnataka, and Tamil Nadu.

• Automobiles and EVs: Major players announced new plants and EV component facilities.

• Data Centers and Digital Infrastructure: Driven by India's 5G rollout and cloud growth.

• Pharmaceuticals and Biotech: Boosted by India’s established pharma supply chain.

Policy Experts React

Economists and trade analysts praised India’s upward movement in the rankings but cautioned that FDI inflows alone should not be the only metric of investment success.

“We must now focus on converting project announcements into ground-level execution. India’s next leap will come from improving investment retention, dispute resolution, and infrastructure readiness,” said Dr. Anjali Mehta, an international trade policy expert.

Looking Ahead: Can India Break into the Top 10?

With 2025 being a pivotal year for India’s economic trajectory — amid elections, global realignments, and fast-paced digital transformation — the challenge will be to sustain and accelerate investor interest.

To rise further in global FDI rankings, India will need to:

• Deepen structural reforms in land, labour, and logistics,

• Ensure regulatory predictability,

• Expand bilateral investment treaties, and

• Address delays in project clearances and land acquisition.

“India has already laid a strong foundation,” said a representative from UNCTAD. “It now needs to build faster and more inclusively on this momentum.”

Conclusion

India’s rise to the 15th position in global FDI rankings for 2024 is more than just a numerical climb — it reflects growing confidence among global investors in India’s reform agenda, economic stability, and market potential.

With strong momentum in greenfield projects and infrastructure financing, India is not only a top recipient of capital but also a rising investment story that continues to attract attention across boardrooms and policymaking platforms worldwide.

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