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India has climbed two places to become the world’s 11th-largest recipient of foreign direct investment (FDI) in 2025 after attracting nearly $39 billion in inflows, marking a 44% year-on-year increase, according to the latest World Investment Report 2026 released by the United Nations Conference on Trade and Development (UNCTAD). The country improved from the 13th position it held in 2024, reflecting renewed investor confidence despite an uncertain global investment climate.
The report attributed India’s improved ranking to an active policy agenda focused on expanding the investment base beyond services while accelerating growth in advanced manufacturing. Strong inflows into sectors such as electronics, automobiles, industrial manufacturing and materials helped reinforce India’s position as a preferred destination for global capital.
India’s performance stood out against a relatively modest global backdrop. While developing economies recorded only a marginal increase in FDI inflows, India registered one of the strongest growth rates among major investment destinations. UNCTAD noted that policy reforms, infrastructure development and efforts to improve the ease of doing business have strengthened the country’s long-term investment appeal.
The report also highlighted that India secured the world’s largest announced greenfield investment project in 2025, a $14.5 billion data centre investment by Alphabet, underscoring growing investor interest in the country’s digital infrastructure and technology ecosystem. However, announced greenfield investment values in manufacturing moderated during the year amid global economic uncertainty and geopolitical tensions.
Economists say the latest rankings reinforce India’s emergence as a resilient investment destination at a time when multinational companies are diversifying supply chains and expanding manufacturing footprints. Sustained policy support, infrastructure spending and continued reforms are expected to remain critical for helping India regain a place among the world’s top 10 FDI destinations in the coming years.
