Foreign Direct Investment Trends in India 2024
In 2024, Foreign Direct Investment (FDI) into India remained stable at $28 billion. This figure was consistent with 2023 levels despite a global decline in FDI flows by 11%. The United Nations Conference on Trade and Development (UNCTAD) brought into light India’s resilience in attracting investment, moving up to the 15th position in global FDI rankings. This article provides a detailed overview of the FDI landscape in India, focusing on key statistics and trends.
FDI Inflows
India’s FDI inflows totalled $28 billion in 2024, unchanged from the previous year. This stability is notable given the broader global context where FDI flows decreased . The Department for Promotion of Industry and Internal Trade reported FDI equity inflows of $50 billion for the fiscal year 2024-25, marking a 13% increase.
Ranking and Positioning
India climbed to 15th in UNCTAD’s FDI inflow rankings in 2024. The United States continued to lead globally, followed by Singapore and Hong Kong. China fell to fourth place, witnessing a substantial drop in its FDI inflows.
Greenfield Projects and International Project Finance
India maintained its fourth position in greenfield project announcements. However, it dropped to fifth in international project finance deals, with 97 deals reported in 2024. This decline contrasts with the previous year when India recorded a higher number of deals.
Investment Dynamics
The report noted a strong performance in greenfield projects, particularly in India and the United Arab Emirates. Conversely, international project finance remained concentrated in established markets. This reflects a divergence between industrial investment and infrastructure development.
Sectoral and Major Investments
India’s projected capital expenditures rose by over 25% to $110 billion, contributing to Asia’s total. Major technology firms expanded operations in India, with Microsoft investing $3 billion in Cloud and AI infrastructure. Additionally, Walt Disney’s merger of Star India with Viacom 18 Media brought into light shifts in the media landscape.
Cross-Border Mergers and Acquisitions
The report indicated a decline in cross-border mergers and acquisitions in developing Asia, including India. Many international pharmaceutical operations were sold to local firms, reflecting a trend towards local ownership.
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