India climbs to 15th rank in Global FDI Inflows

On June 19, 2025, the United Nations Conference on Trade and Development (UNCTAD) released its World Investment Report 2025. The global investment outlook has turned negative, driven by escalating trade tensions, geopolitical fragmentation, and increasingeconomic volatility. These factors have led to significant downward revisions in Foreign Direct Investment (FDI) projections, affecting GDP growth, capital formation, trade flows, financial stability, and investor confidence. Early 2025 data indicate historically low levels of deal-making and project activity.

- Madhusudhanan S

Global Investment Trends

The report was launched by UNCTAD Secretary-General Rebeca Grynspan, who cautioned that FDI is increasingly bypassing countries and sectors that need it the most.

“Productive foreign direct investment fell by 11% in 2024, marking the second consecutive year of decline. This is not just a downturn — it’s becoming a pattern,” Grynspan noted.

Top destinations for FDI

The United States remains both the largest source and destination for global FDI. Five Asian economies also feature among the top 10 sources of FDI outflows, underscoring Asia’s growing influence in the global investment landscape.

Sharp declines in Key Development Sectors

The report highlights severe investment declines in sectors crucial for sustainable development, particularly affecting vulnerable and underdeveloped economies.

• Renewable energy investments fell by 31%

• Water and sanitation saw a 30% decline

• Agrifood systems dropped by 19%