India's gross FDI inflow hits record $94.84 billion in FY26
Synopsis
India's gross FDI crossed $94.84 billion in FY26 — a new all-time high — while net FDI rebounded from near-zero to $6.95 billion. UNCTAD now ranks India the world's 11th largest FDI destination, and Alphabet's $14.5 billion data centre commitment topped the global greenfield investment list for 2025. The numbers signal a structural shift, not just a cyclical bounce.
Key Takeaways
India's gross FDI inflow hit a record $94.84 billion in FY 2025-26 , up from $80.61 billion in FY 2024-25 .
Net FDI recovered sharply to $6.95 billion in FY26 , from just $0.96 billion in FY25 .
UNCTAD 's World Investment Report ranked India the 11th largest FDI recipient globally in 2025 , up from 13th in 2024 .
India's FDI inflows surged nearly 44 per cent to $38.89 billion in 2025 , against a 2 per cent rise across developing economies.
Alphabet Inc announced a $14.5 billion data centre investment in India — the world's largest announced greenfield project in 2025 .
Hynfra (Poland) committed $4 billion to Andhra Pradesh , reflecting diversified investor interest.
India recorded a historic gross foreign direct investment (FDI) inflow of $94.84 billion in FY 2025-26, surpassing the previous year's figure of $80.61 billion in FY 2024-25, Parliament was informed on Tuesday, 28 July 2025. The milestone underscores India's growing stature as a preferred global investment destination amid a cautious global capital environment.
Net FDI Rebounds Sharply
Net FDI inflows, which had been under pressure in recent years, recovered significantly to $6.95 billion in FY 2025-26, up from just $0.96 billion in FY 2024-25. Minister of State for Finance Pankaj Chaudhary attributed the earlier decline in net FDI to increased repatriation and disinvestment by foreign investors, as well as rising Overseas Direct Investment (ODI) outflows.
Chaudhary, in a written reply to a question in the Rajya Sabha, noted that liberalised ODI rules notified in 2022 are enabling Indian entities to expand their business footprints abroad. 'The increasing trend of repatriation indicates that India is not only attracting foreign capital but also delivering strong returns, which enhances its reputation as a reliable investment destination,' he stated.
India Climbs to 11th in Global FDI Rankings
According to the United Nations Conference on Trade and Development (UNCTAD)'s latest World Investment Report, India has moved up two ranks to become the world's 11th largest recipient of FDI, with inflows surging nearly 44 per cent to $38.89 billion in 2025. India had ranked 13th globally in 2024, with inflows of $27.09 billion.
The UNCTAD report credited India's rebound to 'an active policy agenda aimed at broadening its investment base beyond services and accelerating advanced manufacturing.' This contrasted with a relatively subdued global trend — FDI inflows across developing economies rose just 2 per cent, while developing economies in Asia recorded a 3 per cent rise.
Alphabet's $14.5 Billion Data Centre Tops Global Greenfield List
India also attracted the world's largest announced greenfield investment project in 2025. US-based Alphabet Inc announced a $14.5 billion investment in a data centre in India, topping the global greenfield list. Additionally, Poland-based Hynfra announced a $4 billion investment in Andhra Pradesh, further highlighting the diversity of capital flows into the country.
What the Numbers Signal
The gross FDI figure of $94.84 billion reflects total inflows before accounting for repatriation and ODI outflows. The gap between gross and net FDI — while narrowing — signals that foreign investors are also increasingly confident enough to book profits and reinvest elsewhere, a dynamic that analysts note is characteristic of maturing investment ecosystems. Notably, this is the highest gross FDI India has ever recorded, marking a structural shift in investor confidence rather than a one-off spike.
With advanced manufacturing and digital infrastructure emerging as twin pillars of India's investment narrative, the country's FDI trajectory heading into FY 2026-27 will be closely watched by global capital markets.
Point of View
But the more telling number is net FDI — which collapsed to $0.96 billion in FY25 before recovering to $6.95 billion in FY26. That volatility reflects a structural tension: India is attracting capital, but foreign investors are also repatriating profits at scale, and Indian companies are investing abroad at an accelerating pace under liberalised ODI rules. The government frames both trends as positives — and there is a case for that — but net FDI remains well below levels seen in the mid-2010s. The Alphabet greenfield commitment is a genuine signal of confidence in India's digital infrastructure story, but a single $14.5 billion announcement can flatter aggregate data. The real test is whether manufacturing-sector FDI — not just data centres and services — sustains the momentum UNCTAD is now tracking.
NationPress
28 Jul 2026
Frequently Asked Questions
What is India's gross FDI inflow in FY 2025-26?
India's gross FDI inflow in FY 2025-26 reached a record $94.84 billion, up from $80.61 billion in FY 2024-25. The figure was disclosed by Minister of State for Finance Pankaj Chaudhary in a written reply to the Rajya Sabha on 28 July 2025.
Why did India's net FDI decline in recent years?
Net FDI fell in recent years primarily due to increased repatriation and disinvestment by foreign investors, as well as rising Overseas Direct Investment outflows by Indian companies. Net FDI had dropped to $0.96 billion in FY25 before recovering to $6.95 billion in FY26.
What is India's ranking in global FDI according to UNCTAD?
According to UNCTAD's latest World Investment Report, India is now the world's 11th largest FDI recipient, up two places from 13th in 2024. India's FDI inflows surged nearly 44 per cent to $38.89 billion in 2025.
What is Alphabet's investment in India?
US-based Alphabet Inc announced a $14.5 billion investment in a data centre in India in 2025, which UNCTAD identified as the world's largest announced greenfield investment project that year.
How does India's FDI growth compare with other developing economies?
India's FDI inflows rose nearly 44 per cent in 2025, sharply outpacing the 2 per cent average rise across developing economies and the 3 per cent rise recorded by developing economies in Asia.
