New Delhi: India rose in the global rankings of top foreign direct investment (FDI) destinations in 2024, retaining its dominance in South Asia and accounting for the vast majority of regional inflows, according to the United Nations Conference on Trade and Development (UNCTAD) report released in June.

Despite a marginal decline in FDI inflows to $27.6 billion, India climbed to 15th place globally in 2024, up from 16th position in 2023 when it received $28.1 billion, according to UNCTAD’s World Investment Report 2025.

“While project numbers increased in most regions, only a few countries saw a substantial rise in the value of new project announcements. India stood out with projected capital expenditures rising by more than a quarter to $110 billion—nearly a third of Asia’s total,” the report stated.

India ranked fourth globally in terms of greenfield project announcements, with 1,080 such projects in 2024, marking a notable surge. Greenfield projects have become a vital source of investment in the digital economy, particularly in developing nations.

Indian investors also increased their outbound greenfield project announcements by 20 per cent, placing India among the top 10 investor countries globally. In addition, India was listed among the top five economies in terms of international project finance deals, securing 97 such transactions during the year.

While greenfield investment grew in developed economies, it fell in most developing nations, reversing the previous year’s trend. “In India, semiconductor and basic metals projects contributed significantly to the increase in manufacturing activity,” the report noted.

Energy and gas supply retained its position as the top sector by project value, accounting for 14 percent of the global total. This sector had the highest average project size at $584 million, reflecting large-scale developments such as solar farms, wind parks, LNG terminals, and power transmission systems.

“The sector saw moderate growth in value (+12 per cent), driven by national energy transition plans in India, Indonesia, and Viet Nam, supported by blended finance models and proactive policy frameworks,” the report added.

Globally, FDI fell by 11 per cent, marking the second consecutive year of decline and indicating a deepening slowdown in productive capital flows, the report said. While global FDI rose by 4 per cent in 2024 to $1.5 trillion, this growth was largely due to volatile conduit flows through several European economies, which serve as hubs for transnational investments.

“Too many economies are being left behind—not because of a lack of potential, but because the system still sends capital where it’s easiest, not where it’s needed,” said UN Trade and Development Secretary-General Rebeca Grynspan.

“But we can change that. If we align public and private investment with development goals and build trust into the system, domestic and international markets will bring scale, stability, and predictability. Today’s volatility can become tomorrow’s opportunity,” she added.