India’s magnetic pull on global capital intensified in 2025, with FDI rocketing 73% to $47 billion, UNCTAD reports. Amid a mixed global landscape, India’s performance highlights its policy smarts and sector strengths.
The services boom—spanning financials, IT, and innovation hubs—drove the headline figure, complemented by manufacturing inflows tied to supply chain reforms. Data centers proved pivotal: $7 billion in early 2025 ranked India seventh, with Q4 mega-deals supercharging the sector.
Spotlight deals included Google’s October $15 billion Andhra Pradesh AI commitment, Microsoft’s December $17.5 billion infrastructure infusion, and Amazon’s expansive $35 billion AI portfolio. These horizon-spanning investments bet big on India’s future.
Worldwide, FDI edged up 14% to $1.6 trillion, led by data centers (fifth of project values) and AI’s $270+ billion wave. Semiconductors grew 35% in announcements, contrasting sharp 25% cuts in tariff-exposed textiles, electronics, and machinery.
Developed markets grabbed 43% more FDI at $728 billion. Developing regions slipped 2% to $877 billion—India the outlier. China’s three-year FDI skid deepened 8% to $107.5 billion, strategically allocated nonetheless.
UNCTAD flags fragility: M&A down 10%, project finance at 2019 lows (16% value, 12% deals drop), greenfields off 16%. True progress lies in nurturing tangible projects, not just inflows, to fortify investor trust long-term.