UNCTAD 2025 World Investment Report: FDI Declines Globally, Asia’s Trends Mixed Amid Digital Surge
SDG 8: Decent Work & Economic Growth | SDG 9: Industry, Innovation & Infrastructure
Institutions: Ministry of Finance
The World Investment Report 2025 (WIR 2025) by UNCTAD shows global foreign direct investment (FDI) fell by 11% in 2024 to $1.5 trillion, the second straight year of decline. Project finance flows shrank steeply, particularly in SDG-critical sectors such as energy, renewables, water, and transport.
For developing countries, headline inflows remained broadly steady, but gains were concentrated in a few economies. Investment in infrastructure, water and sanitation, and renewable energy declined by around 30%, while the digital sector expanded 14%—yet nearly 80% of new digital projects were captured by just ten countries. Regionally, Africa registered gains (notably through large projects in Egypt), whereas Asia recorded an overall dip with mixed sub-regional outcomes.
Within Asia, China saw a sharp 29% fall, ASEAN grew by about 10%, and India experienced a modest 2% decline in FDI inflows. Crucially, India’s greenfield project announcements rose ~12%, showing investor interest in new capacity despite weaker realised inflows. Flows to India were concentrated in services, digital, and renewables, while manufacturing showed relative stagnation.
UNCTAD’s findings highlight both risks and opportunities for India. The decline in realised inflows signals the need for stronger facilitation, regulatory certainty, and faster clearances to translate projects into capital flows. At the same time, India’s relative resilience compared to China’s sharper fall, combined with its expanding pipeline of digital and renewable projects, positions it as a potential safe-haven for diversification. The policy challenge is to steer this capital into climate-aligned and inclusive growth sectors rather than a narrow band of industries.
Follow the full update here:
UNCTAD World Investment Report 2025 – Overview PDF
Global FDI Decline – UNCTAD
Developing Asia: Mixed FDI Trends – UNCTAD