India Jumps 2 Ranks As Foreign Investment Inflows Rise By 44%

India saw a strong influx of foreign investment in 2025, surpassing the global average by a large margin. The foreign direct investment (FDI) into India rose from $27.1 billion in 2024 to $38.9 billion in 2025. That is an increase of 43.6 per cent annually against the global average of six per cent.

The jump helped India move up, from 13th position in 2024 to 11th position in 2025, among the world's largest recipients of FDI. In simple terms, India attracted more foreign investment and improved its global ranking.

Globally, FDI inflows rose from $1,530 billion in 2024 to $1,620 billion in 2025. India's growth in receiving FDI shows that investors are once again showing confidence in the country's progress. The United States remained the world's biggest destination for foreign investment, attracting $277 billion in 2025. It was followed by Singapore ($151 billion), Hong Kong ($116 billion) and China ($105 billion).

India attracted nearly $39 billion in foreign investment, putting it ahead of countries such as Australia, Saudi Arabia, Sweden, France, Indonesia, Vietnam and Spain. The latest recovery comes after several years of decline. India's FDI inflows had fallen from $64.1 billion in 2020 to $27.1 billion in 2024. The rise in 2025 signals a turnaround and suggests that foreign investors are once again willing to bet on India's growth story.

At the same time, Indian companies are also investing more money abroad. India's outward FDI, which tracks investments made by Indian firms in other countries, rose from $24.3 billion in 2024 to a record $35.7 billion in 2025.

Consequently, Indian companies are becoming more active globally while foreign investors continue to put money into India. The gap between money coming into India and money going out has narrowed considerably. In 2025, India received $38.9 billion in FDI and invested $35.7 billion overseas.

The data points to India's growing role in the global economy, not only as a destination for foreign investors, but also as a source of investment for the rest of the world.