Global Foreign Direct Investment (FDI) saw a notable recovery in 2025, increasing by 15% to USD 1,660 billion, according to the OECD’s April 2026 report. While the headline figure suggests a broad recovery, the growth was unevenly distributed.
Excluding large fluctuations in specific European economies, global flows grew by a more modest 6%. A key characteristic of this period was that investment was largely fueled by intra-company loans and reinvested earnings rather than new equity investments. The United States remained the world's top destination for FDI, receiving USD 288 billion, followed by China and Brazil.
A key concern highlighted in the report is the slowdown in greenfield investment—new projects that typically create jobs and build productive capacity. Both the number of projects and total spending declined globally. However, the investment that did occur was highly concentrated: just five countries, the US, France, India, the UK, and Australia, accounted for 46% of global greenfield capital expenditure, placing India among the top destinations for large-scale projects.
Cross-border M&A activity remained resilient, growing by 8% globally. Looking toward 2026, the OECD warns that geopolitical tensions, persistent inflation, and the Middle East crisis may weigh heavily on future investment prospects.
Key Statistical and Economic Benchmarks
Global Inflows: Reached USD 1,660 billion, a 15% increase over 2024.
Top Recipients: United States (USD 288bn), China (USD 80bn), and Brazil (USD 77bn).
Top Sources: United States (USD 310bn), Japan (USD 186bn), and China (USD 157bn).
Equity Slump: FDI equity flows in OECD countries fell by 84% (or 25% excluding volatile European data).
Non-OECD G20 Growth: Recorded a massive 42% increase in FDI inflows.
Greenfield Concentration: Five host economies, including India, received nearly half of all global greenfield capital expenditure.
Policy Relevance
Resilience in Capital Attraction: India recorded USD 39.1 billion in FDI inflows in 2025, a significant jump from USD 27.1 billion in 2024. This underscores India's growing status as a preferred destination for long-term productive assets.
Global Corporate Expansion: Indian outward FDI surged to USD 35.7 billion, reflecting the increasing global footprint and maturity of Indian multinational corporations.
Greenfield Leadership: Being ranked among the top five global destinations for greenfield capital expenditure validates the "Make in India" initiative and the success of Production Linked Incentive (PLI) schemes in attracting large-scale manufacturing.
Strong Inward Position: India's total inward FDI stock reached USD 559 billion (13.6% of GDP), providing a stable foundation for capital-intensive sectors like technology and infrastructure.
Navigating Global Volatility: As the OECD warns of a difficult 2026 due to the Middle East crisis, India’s focus on diversifying energy and trade routes is critical to maintaining its status as a "safe haven" for international capital.
What is "Greenfield Investment"?
Greenfield investment is a type of FDI where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. This differs from "Brownfield" investments, like Mergers & Acquisitions (M&A), where a company buys an existing firm.
In the OECD 2026 report, greenfield investment is a critical metric because it represents "productive capacity", new factories, offices, and infrastructure that directly create jobs and physical assets. While the number of these projects stalled globally in 2025, India remained a premier destination for the high-value capital expenditure associated with these large-scale developments.
Follow the Full Report Here: OECD FDI in Figures, April 2026