India attracted much higher foreign investment in 2025 and improved its position among the world's leading destinations for foreign direct investment (FDI). Fresh global data shows that FDI inflows into India increased from $27.1 billion in 2024 to $38.9 billion in 2025. This marks an annual growth of 43.6 per cent, far higher than the global average increase of six per cent.

The strong rise in investment helped India move up from the 13th position in 2024 to the 11th position in 2025 among the world's largest FDI recipients. The improvement shows that more foreign investors chose India for investment during the year. The latest figures also reflect growing confidence in India's economic progress and future opportunities.

At the global level, foreign direct investment also increased during 2025. Total FDI inflows across the world rose from $1,530 billion in 2024 to $1,620 billion in 2025. Although global investment increased, India's growth remained much stronger than the overall trend. This highlights India's improving position in the international investment landscape.

The United States remained the world's biggest destination for foreign investment in 2025. It attracted $277 billion in FDI during the year. Singapore secured the second position with $151 billion, followed by Hong Kong with $116 billion. China ranked fourth after receiving $105 billion in foreign investment.

India attracted nearly $39 billion in foreign investment in 2025. This placed the country ahead of several major economies, including Australia, Saudi Arabia, Sweden, France, Indonesia, Vietnam and Spain. The latest performance marks a major recovery after a steady decline over the past few years. India's FDI inflows had dropped from $64.1 billion in 2020 to $27.1 billion in 2024. The increase recorded in 2025 signals a turnaround. It also suggests that foreign investors are once again showing confidence in India's long-term growth potential.

Indian companies also increased their investments in overseas markets during the year. India's outward FDI, which measures investments made by Indian firms in other countries, rose from $24.3 billion in 2024 to a record $35.7 billion in 2025. The figures show that Indian businesses are expanding their presence across international markets and exploring new opportunities abroad.

The difference between foreign investment entering India and investments made by Indian companies overseas has become much smaller. India received $38.9 billion in foreign direct investment in 2025, while Indian firms invested $35.7 billion in other countries during the same period. The narrow gap reflects the growing strength of Indian businesses in the global economy.

The latest figures present a positive picture of India's role in international investment. The country continues to attract foreign investors while Indian companies increase their investments across the world. The recovery in FDI inflows and the record level of outward investment indicate that India is strengthening its position as both a preferred destination for global investment and an important source of investment in international markets.