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Figure 1: Global FDI Inflows (US$ billion)
2500.0

2000.0

1500.0

1000.0

500.0

0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

Total Developed Economies Developing Economies Least Developed Countries (LDCs)

Source: CII research; UNCTAD (2025)

The decline was concentrated in developed economies, FDI Trends in India
particularly Europe, while inflows into developing
economies remained relatively stable, continuing a India has recorded strong FDI inflows over the past
longer-term trend (Figure 1), with developing Asia decade. Between FY 2015-25, it attracted over US$700
remaining the largest recipient of global FDI. billion, with nearly US$400 billion received in the last four
While the outlook for 2025 was initially weak, global FDI years alone, double the inflows of the previous decade
rose by 14 per cent to US$1.6 trillion, according to the (FY 2005-14) (Figure 2). Despite global headwinds, FDI
UNCTAD Investments Trends Monitor (January 2026) . inflows rose to US$81.04 billion in FY 2024-25, a 14 per
3
This recovery was uneven. Developed economies cent increase over the previous year. India’s growing
recorded a sharp increase of 43 per cent to attractiveness is also reflected in the expansion of its FDI
5
US$728 billion, while inflows into developing economies source countries from 89 in FY 2014 to 112 in FY 2025 .
declined by 2 per cent to US$877 billion, with This momentum has continued into FY 2025-26, with FDI
lower-income countries facing increasing constraints.
equity inflows rising by 18 per cent during the first six
months (April–September 2025 . Till December, the FDI
6
Capital flows have also become more selective, with a inflows have already reached US$73.3 billion (Figure 2).
growing preference for high-technology sectors such as
data centres, AI infrastructure, and semiconductors,
alongside relatively weaker investment in traditional
GVC-linked sectors such as textiles and electronics.

These shifts are reflected in a broader decline in FDI
intensity across emerging market and developing
economies. The FDI-to-GDP ratio has fallen from about
5 per cent during the global financial crisis to around
4
2 per cent in 2023 , with sharper declines in economies
characterised by lower trade openness, weaker
institutions, and high informality.

3 UNCTAD. (2026). Global Investments Trends Monitor. UNCTAD. https://unctad.org/system/files/official-document/diaeiainf2026d1_en.pdf
4 Adarov, A., & Pallan, H. (2025). Foreign Direct Investment in Retreat: Policies to Turn the Tide. Washington, D.C., United States: World Bank.
5 PIB. (2025). India Records USD 81.04 Billion FDI Inflow in FY 2024–25. Government of India.
6 The Hindu. (2025). Foreign Direct Investments rise 18% to US$35.18 billion in April-September; inflows from U.S. double. Available at
https://www.thehindu.com/business/foreign-direct-investments-rise-18-to-3518-billion-in-april-september-inflows-from-us-double/article70346276.ece

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