In June 2025, Rebeca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), officially launched the World Investment Report 2025 titled “International Investment in the Digital Economy“ in Geneva, Switzerland. As per the report, India’s Foreign Direct Investment (FDI) inflows declined by 1.9% in 2024, dropping from USD 28.1 billion in 2023 to USD 27.6 billion.
- India’s ranking for FDI inflows improved to 15th in 2024 from 16th in 2023, while its position for FDI outflows rose to 18th in 2024, up from 23rd the previous year. India emerged as the leading recipient of FDI within the South Asian region.
- India secured the fourth position globally with 1,080 greenfield projects announced in 2024. It also ranked among the top five countries for international project finance, recording 97 deals during the year.
- The United States of America(USA) continues to be the leading country for both foreign direct investment (FDI) inflows and outflows.
About World Investment Report 2025
The World Investment Report is an annual publication by the UNCTAD.
- It highlights global trends in FDI, offering insights at both regional and national levels, and explores new strategies to enhance FDI’s role in supporting development.
Top 5 Host economies:
| 2024 Rank | Country | FDI Inflows (billions USD) | |
|---|---|---|---|
| 2024 | 2023 | ||
| 1 | The United States of America (USA) | 279 | 233 |
| 2 | Singapore | 143 | 135 |
| 3 | Hong Kong, China | 126 | 123 |
| 4 | China | 116 | 163 |
| 5 | Luxembourg | 106 | -9 |
| 15 | India | 27.6 | 28.1 |
Top 5 Home economies:
| 2024 Rank | Country | FDI Outflows (billions USD) | |
|---|---|---|---|
| 2024 | 2023 | ||
| 1 | The United States of America (USA) | 266 | 360 |
| 2 | Japan | 204 | 197 |
| 3 | China | 163 | 177 |
| 4 | Luxembourg | 109 | -10 |
| 5 | Hong Kong, China | 87 | 97 |
| 18 | India | 24 | 14 |
Note:
- The home country is where the FDI originates, while the host country is where the FDI goes.
- 7 economies in Asia are among the top 20 home economies of outflows.
Global FDI trends:
i.The Global FDI flows were said to be 4% higher, totaling USD 1.5 trillion. But this number was boosted by unstable investments passing through certain countries.
- Without counting those, global FDI actually dropped by 11%, falling for the second year in a row.
- Europe was the most affected region, while North America and Southeast Asia demonstrated stronger resilience.
ii.FDI to developing countries remained stable at USD 867 billion, or 57% of global FDI, despite tight financing conditions and growing geopolitical uncertainty.
iii.Among the top 20 host economies, significant declines were noted in China, France, Italy, Sweden and Saudi Arabia.
Regional trends:
i.The developing Asia being the largest recipient region of FDI inflows observed a marginal decline of 3% compared to last year.
- The main reason for this is China, which faced a FDI decline of 29%.
- South-East Asia stood out as Association of Southeast Asian Nations(ASEAN) countries saw a 10% increase in FDI, reaching a record high of USD 225 billion.
ii.FDI inflows to Least Developed Countries (LDC) were up by 9% at USD 37 bn or 2.4% of global FDI inflows.
iii.The FDI inflows to Africa increased by 75% to USD 97 bn, the highest value ever recorded.
iv.The Middle East, particularly the Gulf region, continued to attract strong FDI inflows due to efforts to diversify and invest in non-oil sectors.
v.Meanwhile, Latin America and the Caribbean experienced a 12% decline in FDI. However, new greenfield projects in Argentina, Brazil, and Mexico indicated renewed investor interest and growing activity in productive industries.
Key Highlights:
i.Continued deterioration of investment flows into key sectors aligned with the Sustainable Development Goals (SDG) was observed.
- Investment in energy and gas supply fell by 28%
- Project finance in renewable energy declined by 16%
ii.The greenfield investment in the digital economy has grown from USD 131 billion in 2020 to USD 360 billion in 2024.
- Also, most greenfield investment in the digital economy flow to 10 developing countries.
iii.In 2024, the number of greenfield projects announced in industrial sectors increased by 3%, although their value fell by 5%.
- The total value remained high, at USD 1.3 trillion, the second-highest level on record.
iv.In 2024, global M&A (Merger and Acquisition)activity experienced a modest recovery, with total deal value increasing by 10%, reaching about USD 3 trillion.
v.Energy and gas supply retained its position as the top sector by project value, accounting for 14% of the total.
About United Nation Conference on Trade and Development (UNCTAD)
Secretary-General – Rebeca Grynspan(Costa Rica)
Headquarters – Geneva, Switzerland
Founded – 30 December 1964
