SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure | SDG 17: Partnerships for the Goals
Ministry of Commerce and Industry | Department for Promotion of Industry and Internal Trade (DPIIT) | NITI Aayog
The UNCTAD Global Investment Trends Monitor reports that global foreign direct investment (FDI) rose by 14% to an estimated 1.6 trillion dollars in 2025. However, this growth was characterized by a sharp geographic divide; flows to developed economies surged by 43%, while developing economies saw a 2% decline. A substantial portion of this global increase was driven by over 140 billion dollars in conduit FDI flowing through major financial centers and investment hubs, specifically the United Kingdom, Luxembourg, Switzerland, and Ireland. Net of these fluctuations in indirect flows, the actual global increase would be approximately 5%.
Sectoral and Project Trends
The current investment environment is heavily shaped by technology-intensive infrastructure and strategic industries.
Strategic Concentrations: Data centers emerged as a primary driver, accounting for one-fifth of global greenfield project values.
Semiconductors: Newly announced project values in the semiconductor industry increased by 35%, driven by AI demand and supply chain restructuring.
Infrastructure Downturn: International project finance declined by 16%, marking the fourth consecutive year of negative growth.
Renewable Energy Pullback: Greenfield investments in renewable energy fell by 28% as investors react to revenue risks and regulatory challenges.
Regional Performance and India’s Surge
While China recorded its third consecutive year of declining FDI (down 8%), India registered a significant surge.
Inflow Surge: FDI to India rose by 73% to 47 billion dollars in 2025.
Growth Drivers: This increase was led by large-scale investments in services (IT, Finance, R&D) and manufacturing.
Tech Hub Status: India is now among the top 10 global hosts for data center investments, with 7 billion dollars in projects announced during the first three quarters of 2025.
What is Conduit FDI? Conduit FDI refers to investment flows that pass through an economy (an investment hub or financial center) on their way to a final destination in another country. These flows often inflate headline FDI statistics through several global financial centers without representing significant long-term capital investment in the intermediary country’s domestic productive capacity.
Policy Relevance
India’s 73% growth in FDI—occurring against a backdrop of stagnant or declining flows in other lower-income and Asian economies—highlights the success of its strategic positioning within global supply chains.
Supply Chain Integration: National policies aimed at integrating India into global production networks are effectively attracting capital in high-growth sectors.
Infrastructure Resilience: As international project finance for renewables slows globally, India’s resilience in attracting services and manufacturing FDI provides a critical buffer.
Sectoral Leadership: The heavy investment in data centers and AI-related sectors necessitates an urgent focus on robust domestic digital infrastructure and regulatory frameworks to maintain this momentum.
Follow the full report here: UNCTAD Global Investment Trends Monitor