Source: Business Standard
Context
India climbed 2 places to become the 11th-largest FDI recipient globally, with inflows jumping 44% to $38.89 billion in 2025, driven by advanced manufacturing push and Alphabet’s record $14.5 bn greenfield data centre announcement.
Before Understanding the News
| Term | Meaning |
|---|---|
| FDI | Investment by foreign entity in domestic business (10%+ equity) |
| Greenfield Investment | New project built from scratch by foreign investor |
| Brownfield Investment | Foreign investor acquires/expands existing facility |
| Inward FDI | Money coming INTO India |
| Outward FDI | Investment by Indian firms in foreign countries |
| Global Value Chain (GVC) | Cross-border production networks |
India’s FDI Trajectory (UNCTAD Data)
| Year | Inflows ($ bn) | Global Rank | Outflows ($ bn) | Home Rank |
|---|---|---|---|---|
| 2021 | 44.8 | 8th | 17.3 | 25th |
| 2022 | 49.4 | 8th | 14.6 | 23rd |
| 2023 | 28.1 | 16th | 13.9 | 23rd |
| 2024 | 27.1 | 13th | 24.3 | 20th |
| 2025 | 38.9 | 11th | 35.7 | 18th |
Global FDI Rankings (2025)
| Rank | Country | Inflows ($ bn) |
|---|---|---|
| 1 | United States | 277 (–2%) |
| 4 | China | 104.66 (down from 116.24) |
| 11 | India | 38.89 (+44%) |
Global FDI Trends (2025)
- Developing economies overall: +2%.
- Developing Asia: +3%.
- US inflows: –2%.
- China inflows: Fell (US$ 116.24 bn → US$ 104.66 bn).
Who is UNCTAD?
- Full form: United Nations Conference on Trade and Development.
- Established: 1964 (as a permanent intergovernmental body of the UN).
- HQ: Geneva, Switzerland.
- Members: 195 states.
- Secretary-General (2026): Rebeca Grynspan (Costa Rica) — since 2021.
- Flagship reports: World Investment Report (WIR), Trade and Development Report, Digital Economy Report, Technology and Innovation Report.
- Note: Recently rebranded as UN Trade and Development (2024).
Key Terms
- World Investment Report (WIR): UNCTAD’s flagship annual report on global FDI trends; published since 1991.
- FDI: Investment where a foreign entity holds 10% or more equity in a business — implies lasting interest and management involvement.
Practice MCQs
Q1. With reference to India’s FDI ranking per UNCTAD World Investment Report 2026, consider the following statements:
- India rose to the 11th position among global FDI recipients in 2025.
- India’s FDI inflows reached US$ 38.89 billion in 2025 — a 44% jump from 2024.
- India was ranked 13th in 2024 with inflows of US$ 27.09 billion.
- The report is published by the World Bank.
How many of the above statements are correct?
(a) Only one (b) Only two (c) Only three (d) All four (e) None
(Statement 4 is wrong; the World Investment Report (WIR) is published by UNCTAD, NOT the World Bank. UNCTAD is headquartered in Geneva.)
Q2. With reference to global FDI trends in 2025 (per UNCTAD WIR 2026), consider the following statements:
- The United States remained the world’s largest FDI recipient with US$ 277 billion.
- China retained its 4th position despite inflows declining to US$ 104.66 billion.
- Developing economies overall saw a 2% rise in FDI inflows.
- Developing Asia saw a 15% surge in FDI.
How many of the above statements are correct?
(a) Only one (b) Only two (c) Only three (d) All four (e) None
(Statement 4 is wrong; Developing Asia saw only a 3% rise in FDI — NOT 15%. India’s rebound was against this modest regional trend.)
Answer Key
- (c) — Statement 4 wrong: WIR published by UNCTAD, not World Bank.
- (c) — Statement 4 wrong: Developing Asia grew 3%, not 15%.
