UN Report Notes Sharp Rise in India’s FDI Inflows in 2025

PTI, UNITED NATIONS, JAN 23, 2026: The FDI inflows to India in 2025 surged by 73 per cent to USD 47 billion, mainly due to large investments in services and manufacturing, supported by policies aimed at integrating the country into global supply chains, the UN said.

The Global Investment Trends Monitor, released by the United Nations Conference on Trade and Development (UNCTAD), stated on Thursday that the Foreign Direct Investment (FDI) inflows to China declined for the third consecutive year, falling by 8 per cent to an estimated USD 107.5 billion.

“FDI inflows to India surged by 73 per cent to USD 47 billion, mainly due to large investments in services – including finance, IT, and R&D – as well as manufacturing, supported by policies aimed at integrating India into global supply chains,” UNCTAD said.

It added that global foreign direct investment reached an estimated USD 1.6 trillion in 2025, a 14 per cent increase.

However, a significant part of the increase was due to higher flows through several major global financial centres and investment hubs (economies with significant conduit FDI flows), which added more than USD 140 billion to the total, with the United Kingdom, Luxembourg, Switzerland and Ireland – in that order – accounting for the bulk.

FDI flows to North America remained broadly stable. The United States – the world’s largest FDI recipient – recorded a 2 per cent increase in inflows.

Cross-border M&A activity declined by 22 per cent to USD 132 billion. While M&A sales decreased across most industries, they rose sharply in semiconductors and telecommunications, it said.

The report added that the total value of international project finance increased by 7 per cent to USD 218 billion, while the number of projects declined by only 5 per cent.

Project finance activity increased in Syria, the Philippines, Viet Nam, and Uzbekistan, but declined in Egypt and India.