New Delhi, July 28: India has set a new record in foreign direct investment (FDI) for the fiscal year 2025-26. The government announced in Parliament on Tuesday that the country attracted a gross FDI of $94.84 billion during this period, compared to $80.61 billion in the previous fiscal year 2024-25.
In a written response to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary noted that the recent decline in net FDI is beginning to improve. For FY 2025-26, net FDI rose to $6.95 billion, up from just $0.96 billion in FY 2024-25.
The minister explained that fluctuations in net FDI in recent years were primarily due to increased repatriation and disinvestment by foreign investors, as well as outbound direct investment (ODI) from India.
He highlighted that the liberal ODI regulations implemented in 2022 have enabled Indian companies to expand their operations abroad, making them more competitive in the global market and strengthening the Indian economy in the long run.
Chaudhary also mentioned that the rising trend of repatriation by foreign investors indicates that India is not only attracting foreign capital but also providing better returns to investors. This has further enhanced India’s image as a reliable investment destination on the global stage.
According to the latest World Investment Report by the United Nations Conference on Trade and Development (UNCTAD), India has climbed two spots in the global ranking of countries attracting FDI. In 2025, India became the 11th largest recipient of FDI worldwide, with inflows of $38.89 billion, up from 13th place in 2024 with $27.09 billion.
The UNCTAD report states that India has adopted proactive policies to increase investment in manufacturing and advanced industries, moving beyond just the services sector, making it a major attraction for global investors.
While FDI flows in developing countries rose by an average of 2% and by 3% in Asian developing countries, India significantly outperformed these averages.
The government also reported that in 2025, India attracted some of the world’s largest announced greenfield investment projects. Alphabet Inc. from the United States announced a $14.5 billion investment in data centers in India, marking it as the largest declared greenfield project globally. Additionally, Poland’s Hynfra announced a $4 billion investment in Andhra Pradesh, establishing itself as a key foreign investor in India.
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