India climbed to the 15th spot among the world’s top foreign direct investment (FDI) destinations in 2024, according to the United Nations Conference on Trade and Development (UNCTAD). It remained the dominant FDI recipient in South Asia, drawing the vast majority of inflows.
FDI inflows into India dipped slightly to $27.6 billion in 2024, from $28.1 billion in 2023. Yet, India moved up from 16th to 15th place globally, as per the UNCTAD World Investment Report 2025.
Meanwhile, capital expenditure projections for new projects surged. “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 stated.
India Sees Surge in Greenfield Projects
India ranked fourth globally in greenfield projects, with 1,080 new announcements in 2024. These projects continue to fuel investment in the digital economy, especially in developing nations.
Indian investors increased their greenfield project announcements by 20 per cent. This growth placed India among the top 10 global investor countries. Additionally, India ranked in the top five for international project finance deals, securing 97 such transactions.
However, while developed nations saw gains in project value and number, developing countries reported declines. This trend reversed the pattern observed in 2023.
Manufacturing and Energy Sectors Drive Investment
Semiconductor and basic metals projects boosted India’s manufacturing activity in 2024. The energy and gas supply sector remained the highest by project value, accounting for 14 per cent of the total.
That sector showed the highest average project size at $584 million. Large-scale developments, including solar farms, wind parks, LNG terminals, and power transmission lines, led this growth.
Moreover, the energy sector value rose by 12 per cent. India’s national energy transition plans and blended finance models supported this growth, along with similar efforts in Indonesia and Viet Nam.
Globally, FDI fell by 11 per cent, marking a second year of decline. Still, overall FDI flows rose by 4 per cent to $1.5 trillion due to volatile financial conduit flows through European economies.
UNCTAD Secretary-General Rebeca Grynspan noted that many economies remain left behind. “The system still sends capital where it’s easiest, not where it’s needed,” she said.
She urged alignment between public and private investment and global development goals. “With trust and proper direction, today’s volatility can become tomorrow’s opportunity,” she added.
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