India’s foreign direct investment (FDI) surged 44% to $39 billion in 2025, with US-based Alphabet accounting for more than a third of the inflows, according to the United Nations Conference on Trade and Development (UNCTAD).Alphabet invested $14.5 billion in Andhra Pradesh, accounting for about 37% of India’s total FDI inflows in 2025. It was followed by Poland’s Hynfra, which committed $4.1 billion to renewable energy projects in the state. India also climbed two places to become the world’s 11th-largest recipient of FDI during the year.
During the year, India attracted 8% of global investment related to AI infrastructure and AI technologies. “India has emerged as a major recipient because of its scale, fast-growing digital demand, technical skills and expanding markets for cloud services,” the report said.
Among the top 10 greenfield investment projects announced in 2025, China’s East Hope ranked second with a $12 billion investment in Kazakhstan’s metals sector, while India’s Rana Group featured third with a $10 billion investment in the United Arab Emirates (UAE).Despite the increase in total FDI inflows, project indicators suggested a more cautious investment cycle. The value of announced greenfield investments fell from more than $111 billion in 2024 to about $74 billion in 2025, while the number of projects declined marginally.Meanwhile, India’s outward FDI rose 50% to $36 billion in 2025, reflecting a compound annual growth rate (CAGR) of 26.3% over the past five years. During the same period, inward FDI declined by nearly 10%, falling from $64.1 billion in 2020 to $38.9 billion in 2025.Financial incentives also assumed greater importance as governments increasingly used targeted measures to channel investment into priority sectors. In India, these included capital expenditure support and sales-linked subsidies for electronics manufacturing and critical minerals recycling.According to the World Investment Report, at least 24 bilateral investment treaties (BITs) and 20 broader economic treaties with investment provisions (TIPs) were concluded globally in 2025.The UNCTAD report said developing economies were parties to 42 international investment agreements (IIAs) signed during the year, including six involving least developed countries (LDCs). The United Arab Emirates concluded the highest number of agreements (15), followed by India and Malaysia, with three agreements each.(Edited by : Prashant)First Published: Jul 8, 2026 7:56 PM IST
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