India reaches 15th spot in top FDI destinations in 2024: UNCTAD report
New Delhi, Jun 19, 2025
India moved up to 15th in global FDI rankings as flows stayed at $28 billion in 2023 despite a global drop and led Asia in capital expenditures for new projects
Foreign Direct Investment (FDI) into India remained at $28 billion in 2024 amid a 11 per cent decline in global flows, a report by the United Nations Conference on Trade and Development (UNCTAD) said on Thursday.
According to the report, India climbed up a place to reach the 15th spot while retaining its position in the top five for both kinds of FDI: greenfield projects and international project finance deals.
In 2023, FDI inflows into India plummeted 43 per cent in 2023 to $28 billion. China also slipped to fourth spot in 2024 from being the second-largest FDI destination last year with flows dropping to $116 billion from $163 billion.
“Too many economies are being left behind not for the lack of potential but because the system still sends capital where it’s easiest, not where it is needed,” said Rebeca Grynspan , UN trade and development secretary-general.
According to the Department for Promotion of Industry and Internal Trade (DPIIT) data, FDI equity inflows stood at $50 billion during the 2024-25 (FY25), up 13 per cent year-on-year (Y-o-Y).
“The net FDI flows into India, excluding repatriation, was around $29 billion in FY25, according to RBI data. UNCTAD is using the same methodology used by the RBI, while referring to net FDI inflows to India, but it does on a calendar year basis,” said Biswajit Dhar, distinguished professor, Council for Social Development.
UNCTAD reports international investment trends based on FDI statistics– stocks and flows, inward and outward as well as cross-border mergers and acquisitions, greenfield projects, and International project-finance deals. The data on the three types of projects are treated separately.
Noting the expansion of operations by major technology firms -- in both developed and emerging markets-- the report highlighted Microsoft’s $3 billion investment to enhance its Cloud and AI infrastructure in India.
UNCTAD also said that while project numbers increased in most regions, only a few countries saw a significant rise in the value of new project announcements. “India stood out with projected capital expenditures up by more than a quarter to $110 billion, almost a third of the total in Asia,” the report said.
Developed economies received 53 per cent of the total international private equity investment. In comparison, Asia attracted 46 per cent, with India emerging as the main recipient, followed by China.
According to the report, India was also the main destination for Sovereign Wealth Funds in terms of value (24 per cent), which contribute 5 per cent of the total investment in data centres across developing economies. India, along with Brazil and Chile, hosts more than 30 per cent of international projects in developing economies, doubling their pre-2018 share, driven by strong renewable energy programmes.
The report also highlighted Walt Disney’s partial exit from India operations through a $3 billion merger of Star India with Viacom 18 Media, creating a joint venture majority owned by Indian firms. Several pharmaceutical operations in India owned by international investors were also sold to local firms, the report said, stressing the sharp decline in cross border mergers and acquisition activity in developing Asia.
[The Business Standard]
