India Rises to 15th in Global FDI Rankings!
India Rises to 15th in Global FDI Rankings!
UNCTAD Report Highlights India’s Resilience as FDI Magnet, Bolstered by Greenfield Projects and Policy Initiatives
Summary:
India has improved its global standing by moving up one rank to the 15th position among top foreign direct investment (FDI) destinations in 2024, according to the latest World Investment Report by UNCTAD. While overall FDI inflows slightly declined to $27.6 billion from $28.1 billion in 2023, the country witnessed a strong surge in greenfield project announcements, underscoring its long-term attractiveness for investors despite global economic uncertainty.
India Moves Up to 15th Rank in Global FDI List Despite Decline in Inflows: UNCTAD
India has demonstrated its resilience and investment appeal by climbing one notch to 15th place among the world’s top Foreign Direct Investment (FDI) destinations in 2024, even as its total FDI inflows slightly dropped, the latest World Investment Report 2024 by the United Nations Conference on Trade and Development (UNCTAD) has revealed.
FDI Inflows: A Marginal Decline, But Big Picture Positive
The report indicates that India received $27.6 billion in Foreign Direct Investment (FDI) in 2024, a slight decrease from $28.1 billion in 2023, representing a decline of approximately 1.8%. This drop, however, must be viewed in the context of global headwinds: overall global FDI flows fell by 2% to $1.3 trillion in 2024, following a sharper 12% drop in 2023, reflecting economic uncertainty, geopolitical tensions, tighter monetary policies, and declining corporate profits worldwide.
Despite this modest dip, India’s performance stands out positively when compared with other developing economies. The report highlighted that the number of announced greenfield projects — which is a strong indicator of long-term investor confidence — in India, the number of greenfield project announcements increased by more than 20%, positioning the country as third in the world.
Greenfield Surge: The Underlying Strength
UNCTAD’s report underscores that India’s strength lies not just in short-term inflows but in long-term investment commitments. The country has recorded a remarkable increase in greenfield project announcements, especially in the renewable energy, electronics, automotive, and digital infrastructure sectors.
Sectors such as electric vehicles (EVs), semiconductor manufacturing, solar and wind energy, and data centres have witnessed robust investor interest. Companies like Foxconn, Micron Technology, and Tesla’s suppliers have either committed or shown interest in establishing new facilities in India, encouraged by government incentives and schemes such as PLI (Production Linked Incentive) and ‘Make in India’.
The greenfield momentum also reflects India’s demographic advantage, rapid digital transformation, policy consistency, and a growing consumer market that continues to attract global corporations despite short-term macroeconomic challenges.
FDI Inflows by Region: Asia Remains Dominant
Asia maintained its position as the top global recipient of foreign direct investment (FDI), securing $621 billion in 2024. India remains a bright spot within South Asia, accounting for over 80% of the region’s FDI, as per UNCTAD estimates. In contrast, FDI inflows to China fell significantly due to geopolitical factors and a subdued property market, whereas Southeast Asia saw moderate inflows supported by regional trade agreements and supply chain diversification.
The United States continued to be the leading destination for foreign direct investment, with China, Singapore, and Brazil following behind. Notably, countries like Vietnam, Indonesia, and the UAE also saw improvements in FDI rankings due to aggressive trade policies and infrastructure enhancements.
Government Response and Reform Agenda
India’s Ministry of Commerce and Industry welcomed the findings, stating that the improved rank in the UNCTAD index is reflective of the continued trust global investors place in India’s policy regime and long-term potential.
In the last year, the Indian government has implemented a number of significant reforms, including:
Simplifying FDI norms across key sectors like telecom, defence, and retail
Creating a National Single Window System to streamline investment approvals
Expanding PLI schemes to cover additional sectors
Fast-tracking land and labour reforms at the state level to make the business environment more investor-friendly
These proactive initiatives are aimed at not just attracting FDI but ensuring that it leads to job creation, technology transfer, and regional development.
Challenges Still Loom
Despite the positives, experts caution that India must tackle specific persistent challenges to sustain this momentum. These include:
Regulatory complexities and policy unpredictability at the state level
Infrastructure bottlenecks in tier-II and tier-III cities
Delays in contract enforcement and land acquisition
Rising concerns over data privacy and cybersecurity in the digital economy
Moreover, global factors such as rising interest rates in developed markets and political instability in key partner nations may continue to impact short-term capital flows.
Outlook: Cautious Optimism Prevails
Analysts believe that India’s position as an emerging global FDI hub is only strengthening, particularly as global companies diversify supply chains and seek alternatives to China. The convergence of favourable demographics, proactive policy interventions, and improving infrastructure gives India a strong foundation to capitalize on global investment flows in the coming decade.
The slight fall in actual inflows is thus not a sign of weakness but rather a temporary blip in a broader upward trajectory.
Conclusion
India’s rise to the 15th position in global FDI rankings amid a worldwide slowdown in investment flows is a testament to its underlying economic resilience and improving ease of doing business. While inflows declined marginally, the surge in greenfield project announcements indicates strong investor confidence in India’s long-term growth story. With continued reforms, infrastructure upgrades, and policy stability, India is poised to attract even greater FDI in the years to come.
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The image added is for representation purposes only
