United Nations, Jan 22 (NationPress) The inflow of Foreign Direct Investment (FDI) into India witnessed a remarkable surge of 73 percent last year, totaling $47 billion, as reported by UNCTAD.

This growth was primarily driven by substantial investments in the services sector, which includes finance, IT (information technology), and R&D (research and development), in addition to manufacturing. These advancements were supported by policies designed to integrate India into global supply chains, as highlighted in a report published on Tuesday by the UN trade agency.

India's rate of FDI growth is among the highest globally.

During the first three quarters of the previous year, investments in data centers in India reached $7 billion, positioning India as the seventh-largest recipient of investments for data centers during that timeframe, according to the latest issue of the Global Investment Trends Monitor.

However, a significant increase in FDI was observed in the fourth quarter, enhancing the dynamism of this sector.

In October, Google declared its investment of $15 billion in an AI hub located in Andhra Pradesh.

Subsequently, in December, Microsoft announced an investment of $17.5 billion in AI, cloud infrastructure, and data centers.

Also in December, Amazon revealed plans to invest $35 billion in AI and various other sectors, with these investments expected to unfold over several years.

On a global scale, FDI increased by 14 percent last year, reaching $1.6 trillion.

The report indicates that industry trends in 2025 show that data centers are now pivotal to the FDI landscape, accounting for one-fifth of global greenfield project values.

With rising demand for AI infrastructure and proprietary digital networks, announced investments in this area exceeded $270 billion, as per the report.

The semiconductor sector also exhibited high growth, with the value of newly announced projects rising by 35 percent, it noted.

Conversely, sectors exposed to tariff risks experienced a sharp decline of 25 percent in project numbers, according to UNCTAD.

The report identified textiles, electronics, and machinery as among the sectors most adversely affected.

Globally, a significant portion of FDI flows targeted developed economies, which collectively experienced a 43 percent increase, totaling $728 billion as per UNCTAD.

In contrast, developing economies, including India as an outlier, saw a 2 percent drop in FDI, estimated at $877 billion, the report indicated.

For the third consecutive year, FDI in China declined, with an 8 percent decrease to an estimated $107.5 billion, predominantly concentrated in strategic and high-growth sectors.

Overall, investor sentiment remained subdued, as stated by UNCTAD.

The message is clear: headline growth may overstate the recovery. Policymakers should concentrate on reviving real investments rather than merely financial flows, it emphasized.

Indicating weak investor sentiment, the report noted that the value of international mergers and acquisitions fell by 10 percent.

International project finance also declined for the fourth consecutive year, dropping 16 percent in value and 12 percent in deal numbers, reaching levels not seen since 2019.

The number of greenfield project announcements decreased by 16 percent, even though a few mega-projects contributed to high total project values, according to the report.