The United Nations Trade and Development (UNCTAD), in its ‘2026 World Investment Report’ has said that foreign direct investment (FDI) inflows into India increased by 44 per cent to $39 billion in 2025. The report stated that ‘India continued to strengthen its position as a major investment destination in 2025, supported by an active policy agenda aimed at broadening its investment base beyond services and accelerating advanced manufacturing.’
It noted that to attract investment into priority industries such as electronics, semiconductors, and related manufacturing activities, India launched programmes including the Production-Linked Incentive (PLI) schemes, Make in India, Start-up India, and the National Industrial Corridor Development Programme. Citing data from the Reserve Bank of India, the Ministry of Commerce and Industry, and the World Bank, the report said these initiatives have been complemented by reforms aimed at creating a more conducive investment environment, including the National Single Window System, the India Industrial Land Bank, and continued efforts to reduce regulatory burdens.
The report added that the reformed FDI regime has reinforced openness to foreign investors, while institutional mechanisms such as Project Development Cells and the Project Monitoring Group have helped facilitate approvals and project implementation. It noted that these efforts have contributed to strengthening investment momentum, including in manufacturing. It added that announced greenfield investment in manufacturing increased sharply between 2021 and 2024, reflecting India's growing role in selected segments of global value chains (GVCs), including electronics.
However, the report noted that this trend was disrupted in 2025 by a more uncertain global environment. Although total FDI inflows rose to $39 billion, project indicators pointed to a more cautious investment cycle. The total value of announced greenfield investments declined from more than $111 billion in 2024 to about $74 billion in 2025, while the number of projects fell marginally. The slowdown was concentrated in manufacturing, where the value of announced investments dropped from about $65 billion in 2024 to $27 billion in 2025. The decline was most pronounced in capital-intensive sectors, where investment values fell significantly. In many cases, the number of projects declined only moderately, suggesting smaller project sizes rather than fewer investment commitments.
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