India has inched up one spot to rank 15th among the world’s top destinations for foreign direct investment (FDI) in 2024, according to the latest World Investment Report by UNCTAD. While FDI inflows saw a slight decline of 1.9% to $27.6 billion compared to $28.1 billion in 2023, the country remains a dominant player in South Asia.
The report highlights India’s resilience in attracting investments despite global challenges. “While flows to India experienced a small decline, it remained the dominant recipient in the subregion, accounting for the vast majority of inflows,” the findings stated. South Asia collectively received $24.1 billion in FDI during the year.
Globally, the US led the pack with $279 billion in FDI, followed by Singapore ($143 billion), Hong Kong ($126 billion), and China ($116 billion). Interestingly, worldwide FDI fell by 11% to $1.5 trillion in 2024, with minor increases driven mainly by volatile financial flows.
One of India’s standout achievements was its performance in greenfield projects. The country recorded 1,080 new greenfield project announcements in 2024, securing the fourth position globally. It also ranked among the top five nations in international project finance deals, with 97 major agreements. The report pointed out that countries like India, Malaysia, and Vietnam are strengthening their appeal as manufacturing hubs, thanks to shifting trade dynamics and strong industrial policies.
India’s outward investments also showed positive momentum. The country climbed to 18th place in FDI outflows, totaling $23.8 billion in 2024. Additionally, India stood out in digital services, leading greenfield investments in the Global South between 2020 and 2024 with $54 billion. Singapore followed distantly with $12 billion, trailed by Brazil, Malaysia, and China.
The digital economy is expanding rapidly, growing at 10-12% annually, outpacing global GDP growth and fueling value creation. Developing countries collectively attracted $531 billion in greenfield digital economy projects during the same period, with India securing the largest share. Notably, just 10 economies accounted for 80% of these digital investments.
The US was the biggest source of greenfield digital investments in developing economies, contributing 36% of all projects. Meanwhile, supply chain-intensive sectors like electronics, automotive, machinery, and textiles maintained steady greenfield project announcements. The semiconductor industry, though witnessing fewer mega-projects, saw four of the top 10 announcements in the sector, one of which was in India.
“In India, semiconductor and basic metals projects contributed to the rise in manufacturing activity,” the report noted. This signals potential for further growth in high-tech industries.
India’s ascent in the FDI rankings underscores its enduring appeal for global investors, even as it navigates economic fluctuations and a competitive international landscape.