“While flows to India experienced a small decline, it remained the dominant recipient in the subregion (South Asia), accounting for the vast majority of inflows,” the report said. South Asia received $24.1 billion in 2024.
The US was the top recipient at $279 billion, followed by Singapore ($143 billion), Hong Kong, China ($126 billion) and China ($116 billion).
Globally, FDI fell by 11% to $1.5 trillion in 2024, with a 4% headline increase largely driven by volatile financial flows, according to the report.
India also recorded a surge in greenfield project announcements to 1,080 in 2024, placing it fourth globally. The country was among the top five nations in securing international project finance deals at 97. “Countries such as India, Malaysia and Vietnam have enhanced their appeal as manufacturing hubs, bolstered by trade shifts and industrial policies,” the report said.
India’s position also improved in FDI outflows, rising to 18th globally with investments totalling $23.8 billion in 2024. In terms of digital services, India led greenfield investment in the Global South between 2020 and 2024, attracting $54 billion. Next was Singapore with $12 billion investment, followed by Brazil, Malaysia and China. UNCTAD highlighted the rapid expansion of the digital economy, which is growing at an annual rate of 10-12%, faster than the global GDP growth and increasingly driving value creation.During 2020-24, developing countries received $531 billion in greenfield digital economy projects, with India receiving the largest share. Investment was concentrated, with 10 economies accounting for around 80% of the total.
The US emerged as the top source, contributing 36% of all greenfield projects in digital investments in developing economies.
Greenfield project announcements in supply chain-intensive sectors, including electronics, automotive, machinery and textiles, held steady, the report said. While the semiconductor industry recorded few megaproject announcements, four of the 10 largest were in this sector, including one in India.
“In India, semiconductor and basic metals projects contributed to the rise in manufacturing activity,” the report said.
Content Source: economictimes.indiatimes.com