Despite global economic headwinds and an 11% decline in international investment flows, Foreign Direct Investment (FDI) in India held firm at $28 billion in 2024, according to the United Nations Conference on Trade and Development (UNCTAD).
India’s resilient investment climate, bolstered by consistent policy frameworks and robust consumer markets, has earned it the 15th rank in global FDI inflows—a significant move upward from previous years.
FDI Inflows: Year-on-Year Performance
| Metric | 2023 | 2024 | % Change |
|---|---|---|---|
| Total FDI Inflows (UNCTAD) | $28 billion | $28 billion | 0% |
| FDI Equity Inflows (DPIIT data)* | $44.25 billion | $50 billion | +13% |
| Global FDI Trend | – | ↓ 11% | – |
*Note: The Department for Promotion of Industry and Internal Trade (DPIIT) reports equity inflows separately.
This performance highlights India’s stability as a top FDI destination in an otherwise volatile global market.
India’s Global Ranking in FDI Inflows – 2024
| Country | FDI Inflows Rank | FDI (USD Billion) |
|---|---|---|
| United States | 1st | $311 billion |
| Singapore | 2nd | $117 billion |
| Hong Kong | 3rd | $104 billion |
| China | 4th | $89 billion |
| India | 15th | $28 billion |
India’s 15th rank reflects both investor confidence and macroeconomic resilience, especially in contrast to China’s declining FDI numbers.
Greenfield Projects vs. International Project Finance
| Metric | 2023 | 2024 |
|---|---|---|
| Greenfield Project Rank (Global) | 4th | 4th |
| International Project Finance Rank | 4th | 5th |
| Number of Finance Deals | 112 | 97 |
India continued to attract new greenfield investments, particularly in manufacturing and digital infrastructure. However, the dip in international project finance deals reflects changing investor focus.
Sectoral Trends & Major Announcements
India’s projected capital expenditures rose to $110 billion, contributing significantly to Asia’s investment momentum. Key FDI trends include:
🔧 Key Sectors Attracting FDI in 2024
- Technology & AI: Microsoft invested $3 billion in Cloud & AI infrastructure.
- Media & Entertainment: Walt Disney merged Star India with Viacom 18 Media.
- Pharmaceuticals: International firms divested to Indian entities.
- Renewable Energy: Continued investment in solar and wind energy infrastructure.
These trends indicate a shift towards domestic ownership in critical sectors, particularly pharmaceuticals, and increased focus on digital transformation.
Cross-Border M&A: Declining Momentum
Cross-border mergers and acquisitions (M&A) activity in developing Asia declined in 2024, with India experiencing reduced inbound deals. However, a rise in domestic consolidation was observed:
- Global pharma exits created room for Indian firms.
- Media sector realignments indicated market maturity and competitive restructuring.
Outlook for FDI in India: 2025 and Beyond
India’s continued rise in global investment rankings, stable macroeconomic indicators, and favorable policy reforms (like PLI schemes and FDI relaxation in key sectors) position it as a leading FDI destination for 2025.
Key Takeaways
- Resilience: India’s FDI stayed stable amidst a global decline.
- Ranking: Climbed to 15th in the world for FDI inflows.
- Growth Sectors: AI, media, pharma, infrastructure.
- Future-ready: Digital economy and green energy lead 2025 prospects.