{"id":78793,"date":"2026-07-09T18:25:40","date_gmt":"2026-07-09T12:55:40","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=78793"},"modified":"2026-07-09T18:27:20","modified_gmt":"2026-07-09T12:57:20","slug":"india-fdi-11th","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/09-07-2026\/india-fdi-11th","title":{"rendered":"India Rises to 11th Position Among Global FDI Recipients"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>According to the <strong>United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2026,<\/strong> India has moved up two places to become the <strong>11th-largest recipient<\/strong> of Foreign Direct Investment (FDI) globally, with inflows rising significantly in 2025.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s FDI Performance<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India attracted <strong>$38.89 billion in FDI inflows in 2025,<\/strong> registering a <strong>44% <\/strong>increase compared to $27.09 billion in 2024.<\/li>\n\n\n\n<li><strong>Greenfield Investments in India: <\/strong>The value of announced greenfield investments fell to <strong>$74.12 billion in 2025<\/strong> from $111.14 billion in 2024.<\/li>\n\n\n\n<li>However India attracted the world\u2019s largest announced greenfield investment project in 2025.\u00a0 <strong>US-based Alphabet Inc<\/strong> announced a <strong>$14.5 billion<\/strong> investment in a data centre in India, topping the global list.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Outward FDI<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s outward FDI increased by <strong>47%<\/strong>, rising from $24.26 billion in 2024 to <strong>$35.66 billion in 2025.<\/strong><\/li>\n\n\n\n<li>India improved its position as a major investing economy, ranking <strong>18th globally among FDI source countries.<\/strong><\/li>\n\n\n\n<li>Announced overseas greenfield projects by Indian companies rose <strong>41% to $25.29 billion.<\/strong><\/li>\n\n\n\n<li>Rana Group announced a <strong>$10 billion<\/strong> automotive manufacturing facility in the <strong>UAE<\/strong>, among the world\u2019s top five greenfield project announcements.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img data-dominant-color=\"dee0df\" data-has-transparency=\"false\" style=\"--dominant-color: #dee0df;\" loading=\"lazy\" decoding=\"async\" width=\"630\" height=\"264\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/07\/image-81.png\" alt=\"india\u2019s outward fdi\" class=\"not-transparent wp-image-78794\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/07\/image-81.png 630w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/07\/image-81-300x126.png 300w\" sizes=\"auto, (max-width: 630px) 100vw, 630px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>International Investment Trends<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Global FDI flows remained uneven due to geopolitical tensions, supply chain disruptions and weak investment sentiment.<\/li>\n\n\n\n<li>Developing economies witnessed only a <strong>2% rise in FDI inflows.<\/strong><\/li>\n\n\n\n<li>Developing Asia recorded a modest <strong>3% increase.<\/strong><\/li>\n\n\n\n<li><strong>Major FDI destinations:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>The United States<\/strong> remained the largest recipient with<strong> $277 billion inflows, <\/strong>despite a <strong>2% decline.<\/strong><\/li>\n\n\n\n<li>China retained the <strong>4th position<\/strong> with $104.66 billion, though inflows declined from $116.24 billion in 2024.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#fff2cc\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>What is Foreign Direct Investment (FDI)<\/strong><strong>?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It refers to<strong> investments made by foreign entities<\/strong> (individuals or companies) in the business interests of another country, typically in the form of <strong>ownership or control of enterprises.<\/strong><\/li>\n\n\n\n<li>At present,<strong> FDI is prohibited<\/strong> in lottery, gambling and betting, chit funds, Nidhi company, real estate business, and manufacturing of cigars, cheroots, cigarillos and cigarettes using tobacco.<\/li>\n\n\n\n<li><strong>Net FDI:<\/strong> It represents the difference between <strong>foreign investment entering the country and capital flowing out<\/strong> through disinvestment and repatriation.\n<ul class=\"wp-block-list\">\n<li><strong>A decline in net FDI <\/strong>does not necessarily imply a fall in investor interest, as gross inflows may remain strong.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Routes for FDI in India<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Automatic Route: <\/strong>It means the entry route through which investment does <strong>not require the prior approval of the Reserve Bank of India<\/strong> or the Central Government.\n<ul class=\"wp-block-list\">\n<li>Most sectors, such as manufacturing and software, fall under this route.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Government Approval Route:<\/strong> It means the entry route through which investment <strong>requires prior Government approval<\/strong> and foreign investment received under this route shall be in accordance with the conditions stipulated by the Government in its approval.\n<ul class=\"wp-block-list\">\n<li>Sectors such as telecom, media, pharmaceuticals, and insurance fall under this route.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Sectors\/Activities in Which FDI is Prohibited<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Lottery Business<\/strong> including Government\/private lottery, online lotteries, etc.\u00a0<\/li>\n\n\n\n<li><strong>Gambling and Betting <\/strong>including casinos etc.\u00a0<\/li>\n\n\n\n<li>Chit funds, Nidhi company, Trading in Transferable Development Rights (TDRs).\u00a0<\/li>\n\n\n\n<li><strong>Real Estate Business or Construction of Farm Houses<\/strong>;\n<ul class=\"wp-block-list\">\n<li>\u2018Real estate business\u2019 shall not include development of townships, construction of residential \/commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.business-standard.com\/economy\/news\/india-rises-to-11th-largest-fdi-recipient-in-2025-unctad-report-126070700542_1.html\" target=\"_blank\" rel=\"noopener\"><strong>BS<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2026, India has moved up two places to become the 11th-largest recipient of Foreign Direct Investment (FDI) globally, with inflows rising significantly in 2025. <\/li>\n<p><\/p>\n<p><strong> India\u2019s FDI Performance <\/strong><\/p>\n<li class=\"ms-5\"> India attracted $38.89 billion in FDI inflows in 2025, registering a 44% increase compared to $27.09 billion in 2024. <\/li>\n<li class=\"ms-5\"> Greenfield Investments in India: The value of announced greenfield investments fell to $74.12 billion in 2025 from $111.14 billion in 2024. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/09-07-2026\/india-fdi-11th \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-78793","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/78793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=78793"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/78793\/revisions"}],"predecessor-version":[{"id":78798,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/78793\/revisions\/78798"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=78793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=78793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=78793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}