FDI to India drop marginally in 2024, ranked16th in the world: UNCTAD
Report
5 min read
According to the World Investment Report 2025, there was a marginal decline of 1.9% in foreign direct investment (FDI) to India in 2024, to $27.55 billion, amidst a global decline of 11% in FDI in 2024. India slipped one rank to become the 16th largest recipient of FDI in the world in 2024.
The latest figures on the direction and trends of FDI in the world for 2024 were released by the United Nations Trade and Development (UNCTAD) in its latest World Investment Report 2025.
The decline in global FDI has been attributed to rising trade tensions, policy uncertainty, and geopolitical divisions, which are making the investment environment around the world more risky.
The World Investment Report is an annual flagship publication of UNCTAD, which monitors the flow of FDI in the world. It was first released in 1991.
Main Highlights of the Report
For the second consecutive year, global FDI registered a negative growth in 2024.
Global FDI declined by 11% to reach $1.5 trillion in 2024.
The report predicts that global FDI will decline in 2025, also due to trade tensions and policy uncertainty.
The FDI in developed countries declined by 22%, including a steep 58% drop in Europe.
Developing countries received $867 billion in FDI.
There was an increase in FDI in Africa, South-East Asia, West and South Asia, as well as in Central America and the Caribbean. There was a decline of 12 per cent in East Asia (mainly China) and by 18 per cent in South America.
FDI to the United States increased from $233 billion in 2023 to $279 billion in 2024.
China registered a decline in FDI $163 billion in 2023 to $116 billion in 2024.
International Project Finance continued its decline, dipping by 23% in 2024. Infrastructure project finance constitutes a major portion of FDI in the least developed countries.
FDI in India During 2024
- Total FDI in India in 2024 was $27.55 billion, compared to $28.076 billion in 2023.
- India was the 16th largest FDI recipient in the world in 2024, as compared to 15th in 2023.
- The outward FDI from India increased from $13.893 billion in 2023 to $23.782 billion in 2024.
- India was ranked fourth in the world for greenfield project announcements in 2024 after the United States, the UAE and the United Kingdom.
- India was ranked 5th in the world in international project finance deals after the United States, Australia, the United Kingdom and Spain.
Top Ten FDI Recipient Countries in 2024
According to the World Investment Report 2025 of the UNCTAD, the following are the top ten FDI recipient countries in the world.
|
Rank in the world (2024) |
Country’s name |
FDI received (in Billion US dollars) |
|
1 |
United States of America |
279 |
|
2 |
Singapore |
143 |
|
3 |
Hong Kong (China) |
126 |
|
4 |
China |
116 |
|
5 |
Luxembourg |
106 |
|
6 |
Canada |
64 |
|
7 |
Brazil |
59 |
|
8 |
Australia |
53 |
|
9 |
Egypt |
47 |
|
10 |
United Arab Emirates |
46 |
|
16 |
India |
27.55 |
United Nations Trade and Development (UNCTAD)
Established: 1964
The United Nations Trade and Development (UNCTAD) was established as the United Nations Conference on Trade and Development (UNCTAD).
In 2024, its name was changed to the United Nations Trade and Development (UNCTAD).
Headquarters: Geneva, Switzerland
Reports released by UNCTAD
The UNCTAD also releases various reports. The important ones are :
- World Investment Report,
- Trade and Development Report,
- Digital Economy report,
- Review of Maritime Transport,
- Technology and Innovation Report.
- Commodities and Development Report,
- Least Developed Countries Report.
Also Read: RBI: Net FDI declines by 96.5 % in 2024- 25 as Indian Market Matures
