FDI Inflows: India up at 15th spot in UNCTAD ranking
India's FDI ranking improved to 15th globally in 2024, despite a slight dip in inflows to $27.6 billion. The nation remains the top recipient in South Asia and a leading destination for greenfield projects, particularly in digital services, attracting $54 billion between 2020 and 2024. Semiconductor and basic metals projects are driving manufacturing activity.
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New Delhi: India climbed one spot to rank 15th among the world's top destinations for foreign direct investment FDI ) in 2024, despite a slight 1.9% year-on-year decline in inflows to $27.6 billion, according to the World Investment Report 2025 released by UN Trade and Development (UNCTAD) on Thursday. In comparison, the country ranked 16th in 2023 with $28.1 billion in FDI."While flows to India experienced a small decline, it remained the dominant recipient in the subregion (South Asia), accounting for the vast majority of inflows," the report said. South Asia received $24.1 billion in 2024.The US was the top recipient at $279 billion, followed by Singapore ($143 billion), Hong Kong, China ($126 billion) and China ($116 billion).Globally, FDI fell by 11% to $1.5 trillion in 2024, with a 4% headline increase largely driven by volatile financial flows, according to the report.India also recorded a surge in greenfield project announcements to 1,080 in 2024, placing it fourth globally. The country was among the top five nations in securing international project finance deals at 97. "Countries such as India, Malaysia and Vietnam have enhanced their appeal as manufacturing hubs, bolstered by trade shifts and industrial policies," the report said.India's position also improved in FDI outflows, rising to 18th globally with investments totalling $23.8 billion in 2024. In terms of digital services, India led greenfield investment in the Global South between 2020 and 2024, attracting $54 billion. Next was Singapore with $12 billion investment, followed by Brazil, Malaysia and China.UNCTAD highlighted the rapid expansion of the digital economy, which is growing at an annual rate of 10-12%, faster than the global GDP growth and increasingly driving value creation.During 2020-24, developing countries received $531 billion in greenfield digital economy projects, with India receiving the largest share. Investment was concentrated, with 10 economies accounting for around 80% of the total.The US emerged as the top source, contributing 36% of all greenfield projects in digital investments in developing economies.Greenfield project announcements in supply chain-intensive sectors, including electronics, automotive, machinery and textiles, held steady, the report said. While the semiconductor industry recorded few megaproject announcements, four of the 10 largest were in this sector, including one in India."In India, semiconductor and basic metals projects contributed to the rise in manufacturing activity," the report said.
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Time of India
6 hours ago
- Time of India
FDI Inflows: India up at 15th spot in UNCTAD ranking
India's FDI ranking improved to 15th globally in 2024, despite a slight dip in inflows to $27.6 billion. The nation remains the top recipient in South Asia and a leading destination for greenfield projects, particularly in digital services, attracting $54 billion between 2020 and 2024. Semiconductor and basic metals projects are driving manufacturing activity. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: India climbed one spot to rank 15th among the world's top destinations for foreign direct investment FDI ) in 2024, despite a slight 1.9% year-on-year decline in inflows to $27.6 billion, according to the World Investment Report 2025 released by UN Trade and Development (UNCTAD) on Thursday. In comparison, the country ranked 16th in 2023 with $28.1 billion in FDI."While flows to India experienced a small decline, it remained the dominant recipient in the subregion (South Asia), accounting for the vast majority of inflows," the report said. South Asia received $24.1 billion in US was the top recipient at $279 billion, followed by Singapore ($143 billion), Hong Kong, China ($126 billion) and China ($116 billion).Globally, FDI fell by 11% to $1.5 trillion in 2024, with a 4% headline increase largely driven by volatile financial flows, according to the also recorded a surge in greenfield project announcements to 1,080 in 2024, placing it fourth globally. The country was among the top five nations in securing international project finance deals at 97. "Countries such as India, Malaysia and Vietnam have enhanced their appeal as manufacturing hubs, bolstered by trade shifts and industrial policies," the report position also improved in FDI outflows, rising to 18th globally with investments totalling $23.8 billion in 2024. In terms of digital services, India led greenfield investment in the Global South between 2020 and 2024, attracting $54 billion. Next was Singapore with $12 billion investment, followed by Brazil, Malaysia and highlighted the rapid expansion of the digital economy, which is growing at an annual rate of 10-12%, faster than the global GDP growth and increasingly driving value 2020-24, developing countries received $531 billion in greenfield digital economy projects, with India receiving the largest share. Investment was concentrated, with 10 economies accounting for around 80% of the US emerged as the top source, contributing 36% of all greenfield projects in digital investments in developing project announcements in supply chain-intensive sectors, including electronics, automotive, machinery and textiles, held steady, the report said. While the semiconductor industry recorded few megaproject announcements, four of the 10 largest were in this sector, including one in India."In India, semiconductor and basic metals projects contributed to the rise in manufacturing activity," the report said.
Time of India
8 hours ago
- Time of India
Global FDI decline: UN warns of declining globalisation; 'Barriers are rising'
FDI United Nations secretary-general Antonio Guterres on Thursday expressed concern over the declining state of globalisation, warning that foreign direct investment (FDI) continues to shrink amid worsening global economic conditions. His remarks came as the UN released fresh data highlighting a negative outlook for international investment flows. In its 2025 World Investment Report, the UN Conference on Trade and Development (UNCTAD) revealed that global FDI dropped by 11 per cent last year, once adjusted for volatile financial flows through several European economies, falling to $1.5 trillion. The downturn follows two consecutive years of decline and is expected to continue into 2025, driven by ongoing geopolitical tensions and tariff disputes. 'At a time when the world should be deepening cooperation and expanding opportunity, we are seeing the opposite,' Guterres said. 'Barriers are rising. Globalisation is retreating. And the consequences for sustainable development are profound. Rising trade tensions, policy uncertainty and geopolitical divisions risk making the investment environment even worse.,' he further added. UNCTAD attributed the global slide to a 22 per cent fall in FDI to developed economies, with Europe taking the hardest hit, recording a staggering 58 per cent decline. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thị trường có dấu hiệu suy thoái không? IC Markets Đăng ký Undo The United States, however, saw a 23 per cent increase, helping North America stand out as an exception. In contrast, FDI inflows to developing countries remained relatively stable, though the broader investment outlook remains fragile. Presenting the findings at a press conference, UNCTAD secretary-general Rebeca Grynspan called the situation 'clear and urgent,' warning that global investment remains 'weak' and the prospects for this year are 'negative.' 'The investment landscape in 2024 was shaped by international tensions, trade fragmentation, and intensifying industrial policy competition,' she said. These factors are 'eroding long-term investor confidence.' Although trade showed early signs of recovery in 2023 after the pandemic years, Grynspan said that renewed uncertainty—particularly stemming from the renewed trade war initiated by former US President Donald Trump in April—has 'killed that possibility for 2025.' 'The problem that we have is that we don't see an end,' she added. The findings come at a time when global economic cooperation appears increasingly strained, with the ripple effects of protectionist policies threatening to undermine progress toward sustainable development goals. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
10 hours ago
- Business Standard
India reaches 15th spot in top FDI destinations in 2024: UNCTAD report
Foreign Direct Investment (FDI) into India remained at $28 billion in 2024 amid a 11 per cent decline in global flows, a report by the United Nations Conference on Trade and Development (UNCTAD) said on Thursday. According to the report, India climbed up a place to reach the 15th spot while retaining its position in the top five for both kinds of FDI: greenfield projects and international project finance deals. In 2023, FDI inflows into India plummeted 43 per cent in 2023 to $28 billion. China also slipped to fourth spot in 2024 from being the second-largest FDI destination last year with flows dropping to $116 billion from $163 billion. 'Too many economies are being left behind not for the lack of potential but because the system still sends capital where it's easiest, not where it is needed,' said Rebeca Grynspan , UN trade and development secretary-general. According to the Department for Promotion of Industry and Internal Trade (DPIIT) data, FDI equity inflows stood at $50 billion during the 2024-25 (FY25), up 13 per cent year-on-year (Y-o-Y). 'The net FDI flows into India, excluding repatriation, was around $29 billion in FY25, according to RBI data. UNCTAD is using the same methodology used by the RBI, while referring to net FDI inflows to India, but it does on a calendar year basis,' said Biswajit Dhar, distinguished professor, Council for Social Development. UNCTAD reports international investment trends based on FDI statistics– stocks and flows, inward and outward as well as cross-border mergers and acquisitions, greenfield projects, and International project-finance deals. The data on the three types of projects are treated separately. Noting the expansion of operations by major technology firms -- in both developed and emerging markets-- the report highlighted Microsoft's $3 billion investment to enhance its Cloud and AI infrastructure in India. UNCTAD also said that while project numbers increased in most regions, only a few countries saw a significant rise in the value of new project announcements. 'India stood out with projected capital expenditures up by more than a quarter to $110 billion, almost a third of the total in Asia,' the report said. Developed economies received 53 per cent of the total international private equity investment. In comparison, Asia attracted 46 per cent, with India emerging as the main recipient, followed by China. According to the report, India was also the main destination for Sovereign Wealth Funds in terms of value (24 per cent), which contribute 5 per cent of the total investment in data centres across developing economies. India, along with Brazil and Chile, hosts more than 30 per cent of international projects in developing economies, doubling their pre-2018 share, driven by strong renewable energy programmes. The report also highlighted Walt Disney's partial exit from India operations through a $3 billion merger of Star India with Viacom 18 Media, creating a joint venture majority owned by Indian firms. Several pharmaceutical operations in India owned by international investors were also sold to local firms, the report said, stressing the sharp decline in cross border mergers and acquisition activity in developing Asia.
