India’s FDI inflow declines 43%, dropping seven notches to 15th in UNCTAD’s rankings

India fell seven spots to 15th in the World Investment Ranking in 2023, according to a report published by the United Nations Conference on Trade and Development (UNCTAD) on June 20. The report said that India’s foreign direct investment (FDI) inflows last year slumped 43% to $28 billion.

India was ranked 8th in 2023, attracting an investment of $48 billion.

On the other hand, countries like Brazil, Canada, Germany, and Mexico moved up in the global index as top FDI destinations. The United States remains at the top, attracting $311 billion, while China, Singapore, and Hong Kong follow closely behind.

India a top destination for greenfield project announcements

Despite falling in global rankings, India remains a top destination for greenfield project announcements and international deals.

India came in second in clinching international projects, securing 163 deals in 2023, following the US at the top with 334 projects.

India secured 1,058 greenfield projects last year, ranking fourth after the US, the UAE and the UK.

When it comes to outflows, India saw an improvement, moving up to 20th place in 2023 from 23rd place the previous year. The outflows surged to $15 billion in 2023, up from $13 billion the year before.

The report mentioned that in 2023, Argentina, Brazil, China, India, Mexico, Türkey, the UAE, and ASEAN member states each launched national strategies or frameworks for sustainable finance.

“Bangladesh, China, India, Singapore and Thailand released policies to support the banking industry in integrating sustainable development considerations into operations, covering sustainable deposits, sustainable loans and green credits,” the report said.

According to data from the Department for Promotion of Industry and Internal Trade, India's foreign direct investment (FDI) equity inflows fell by 3.5% from the fiscal year 2023 to the fiscal year 2024.