A new UNCTAD report paints a bullish picture for India’s economy, revealing a 73% explosion in FDI to $47 billion in 2025. This positions India among the world’s fastest-growing destinations for foreign capital, defying broader trends in developing markets.
Services led the charge, with heavy bets on finance, IT, and R&D drawing billions. Production sectors gained traction too, thanks to proactive policies linking India to international supply networks. Data centers emerged as a hotspot, pulling in $7 billion in the first nine months and ranking India seventh worldwide.
Q4 brought game-changing announcements: Google’s $15 billion AI initiative in Andhra Pradesh, Microsoft’s $17.5 billion for cloud and AI infrastructure, and Amazon’s whopping $35 billion across digital domains. These multi-year pledges signal long-term faith in India’s tech ecosystem.
On the world stage, global FDI climbed 14% to $1.6 trillion, propelled by data centers (20% of project value) and AI (over $270 billion announced). Semiconductors surged 35% in new projects, but tariff-hit industries like apparel, electronics, and machinery slumped 25%.
Developed economies dominated with a 43% FDI rise to $728 billion. Developing nations lagged with a 2% fall to $877 billion, except India. China’s FDI shrank 8% to $107.5 billion for the third straight year, concentrated in strategic sectors.
Yet, UNCTAD cautions against over-optimism. Weak investor sentiment is evident in a 10% M&A value drop, 16% decline in project finance volumes, 12% fewer deals, and 16% fewer greenfield projects. The report urges focus on substantive investments to build lasting confidence.
