In a standout year for emerging markets, India clinched a 73% FDI increase in 2025, totaling $47 billion, as per UNCTAD’s Global Investment Trends Monitor. This surge catapults India ahead of peers, driven by strategic sector plays.
Services spearheaded the gains—finance, IT, and R&D absorbing major chunks—while manufacturing benefited from supply chain integration initiatives. Data centers shone brightly, with $7 billion invested in Q1-Q3, placing India seventh globally, and Q4’s frenzy amplifying activity.
Tech behemoths fueled the fire: October’s Google $15 billion AI hub in Andhra Pradesh, December’s Microsoft $17.5 billion for AI/cloud/data centers, and Amazon’s $35 billion AI push. Phased over years, they underscore India’s digital ascent.
Globally, FDI grew 14% to $1.6 trillion. Data centers claimed 20% of new investments, AI exceeded $270 billion in pledges, and semiconductors jumped 35%. Tariff vulnerabilities hammered textiles, electronics, and machinery with 25% fewer projects.
Developed countries soared 43% to $728 billion in FDI. Developing Asia dipped 2% to $877 billion, with India as the bright spot. China bucked trends negatively, FDI down 8% to $107.5 billion amid three years of decline, though focused on high-growth areas.
Beneath the surface, challenges persist: 10% M&A decline, four-year project finance downturn (16% value drop, 12% deal reduction), and 16% fewer greenfields. UNCTAD stresses shifting from flow metrics to real economic impacts for sustained growth.