India climbs UNCTAD FDI ranking as FY 2025‑26 inflows top $94 bn

New Delhi — A fresh set of figures released by the finance ministry shows that India attracted a record $94.84 billion in gross foreign direct investment during FY 2025‑26, eclipsing the $80.61 billion of the previous fiscal year. Net FDI turned positive at $6.95 billion, a stark improvement over the $0.96 billion recorded in FY 2024‑25.

Finance Minister Pankaj Chaudhary told Parliament that the recent swings in net FDI were largely driven by heightened repatriation of profits and asset sales by foreign investors, as well as a surge in outbound direct investment (ODI) from Indian corporations. The relaxation of ODI regulations in 2022 has encouraged Indian companies to expand overseas, sharpening their competitive edge and bolstering long‑term economic growth.

The upward trend in capital returns underscores that India is delivering solid returns, further cementing its standing as a trustworthy investment hub. The UNCTAD World Investment Report ranked India 11th worldwide for FDI attraction in 2025, up two slots from the 13th position in 2024, following an inflow of $38.89 billion.

Strategic policy shifts toward manufacturing and high‑technology sectors have diversified India’s investment profile beyond services, attracting a wider pool of global investors. While many developing economies recorded an average FDI increase of about 2 percent, and emerging Asian markets posted a 3 percent rise, India’s growth outpaced both.

The year also witnessed the announcement of the planet’s biggest greenfield commitments, notably a $14.5 billion data‑center project by Alphabet and a $4 billion plant by Poland’s Hynfra in Andhra Pradesh, reinforcing India’s appeal to multinational enterprises.