Is India Rising Among the Top Global Destinations for FDI in 2024?

New Delhi, June 19 (NationPress) India has ascended to become one of the leading global destinations for foreign direct investment (FDI) in 2024, maintaining its status as the foremost recipient in South Asia and capturing a significant share of FDI inflows, according to a report released by the United Nations Conference on Trade and Development (UNCTAD) on Thursday.

Despite experiencing a slight reduction in inflows to $27.6 billion, India has risen to the 15th position globally in 2024, climbing from 16th place in 2023, when it attracted $28.1 billion in FDI, as stated in UNCTAD’s 'World Investment Report 2025'.

The report highlighted that while project announcements increased in many regions, only a handful of countries experienced a significant boost in the value of new projects. India distinguished itself with projected capital expenditures soaring by over 25% to $110 billion, nearly a third of the total in Asia.

India also saw a remarkable uptick in greenfield project announcements, ranking fourth with 1,080 greenfield projects unveiled in 2024.

Greenfield projects have become a crucial source of investment in the digital economy across developing nations.

Moreover, the number of greenfield projects initiated by Indian investors surged by 20%, positioning India among the world's top 10 investor nations, as per the report. The nation also ranked in the top five economies regarding international project finance agreements, successfully securing 97 transactions.

While developed economies reported an increase in the value and number of greenfield projects, developing nations saw a decline, reversing the trend from 2023.

The report noted, “In India, semiconductor and basic metals projects contributed to the rise in manufacturing activity.”

The energy and gas supply sector remained the leading sector by project value, accounting for 14% of the total. This sector exhibited the highest average project size at $584 million, with a prevalence of large-scale developments such as solar farms, wind parks, liquefied natural gas terminals, and power transmission infrastructure.

According to the UNCTAD report, “The sector experienced moderate growth in value (+12%)”, driven by national energy transition initiatives in India, Indonesia, and Vietnam, bolstered by blended finance models and supportive policy frameworks.

On a global scale, FDI decreased by 11%, marking the second year of decline and indicating a deepening slowdown in productive capital flows, as highlighted in the World Investment Report 2025.

Although global FDI rose by 4% in 2024 to $1.5 trillion, this growth is attributed to fluctuating financial conduit flows through various European economies, which often act as transfer points for investments.

UN Trade and Development Secretary-General Rebeca Grynspan stated, “Too many economies are being left behind not for a lack of potential – but because the system still sends capital where it’s easiest, not where it’s needed.”

She added, “But we can change that. If we align public and private investment with development goals and build trust into the system, domestic and international markets will bring scale, stability, and predictability. And today’s volatility can become tomorrow’s opportunity.”