Foreign direct investment (FDI) into India witnessed a sharp increase in 2025, with inflows rising by an estimated 73% to around USD 47 billion, according to a report by the United Nations Conference on Trade and Development (UNCTAD). The surge was driven largely by strong investment activity in services—such as finance, information technology, and research and development—as well as in manufacturing, supported by policy measures aimed at better integrating India into global supply chains.

Key Highlights

• India’s FDI inflows surged 73% in 2025, driven by services, manufacturing, and policy reforms.
• UNCTAD highlights India as a key global investment destination amid shifting international capital flows.

The UNCTAD report highlighted that this jump placed India among the world’s more dynamic investment destinations for the year, even as global foreign direct investment overall grew by roughly 14% to an estimated USD 1.6 trillion in 2025. Much of this global FDI gain was underpinned by expanding cross-border capital flows, particularly through major financial hubs.

UNCTAD also noted that, in contrast to India’s growth, some economies saw less favourable outcomes. For example, FDI inflows to China declined for the third consecutive year, underscoring shifts in investor preferences and broader global investment patterns.

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The increase in FDI into India reflects policymakers’ focus on improving the investment climate, fostering sectoral growth, and attracting long-term global capital. With services and manufacturing capturing a significant share of new investments, the trend signals growing international confidence in India’s economic prospects and its potential role in global production networks.