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India's FDI Inflows Defy Global Downtrend, Remain Robust in FY26: Report

Despite a global slowdown in foreign direct investment, India's gross FDI inflows have demonstrated resilience, remaining at robust levels through FY25 and into FY26. The report highlights a decade-long trend of healthy inflows, peaking in FY22, with strong growth in greenfield projects in sectors like semiconductors and EVs. In contrast, global FDI as a percentage of GDP has been on a clear downward trajectory since the financial crisis. Simultaneously, outward FDI from Indian firms has surged, indicating an expanding global footprint even as India remains a relatively strong destination for inbound investment.

Key Points: India's FDI Stays Strong Despite Global Slowdown: CareEdge

  • Resilient FDI inflows
  • Strong greenfield investments
  • Rising outward FDI
  • Contrast with global trend
2 min read

Despite global FDI slowdown, India's gross inflows remain healthy in FY26: CareEdge Ratings

Despite declining global FDI, India's gross inflows remain healthy, supported by greenfield investments in key sectors. See the FY26 data.

"Global FDI net inflows as a percentage of GDP have declined since the Global Financial Crisis, with subsequent shocks adding further pressure. - CareEdge Ratings"

New Delhi, December 24

Even as global foreign direct investment has been losing momentum over the years, India's gross FDI inflows have remained resilient, supported by steady investment interest, according to a report by CareEdge Ratings.

The report highlighted that gross FDI inflows into India have stayed at healthy levels over the past decade. Gross inflows stood at USD 55.6 billion in FY16 and gradually rose to USD 60.2 billion in FY17, USD 61 billion in FY18 and USD 62 billion in FY19. Inflows strengthened further to USD 74.4 billion in FY20, USD 82 billion in FY21 and peaked at USD 84.8 billion in FY22.

While inflows moderated thereafter but they remained robust at USD 71.4 billion in FY23, USD 71.3 billion in FY24 and USD 80.6 billion in FY25. For FY26 year-to-date, gross FDI inflows are recorded at USD 50.4 billion as of September 2025.

In contrast, global FDI has been steadily losing steam. CareEdge Ratings highlighted that global net FDI inflows as a percentage of GDP have declined since the Global Financial Crisis, with successive shocks such as the Euro Area debt crisis, the Covid-19 pandemic and the Russia-Ukraine war adding further pressure.

It stated "Global FDI net inflows as a percentage of GDP have declined since the Global Financial Crisis, with subsequent shocks adding further pressure".

The report pointed out that India has seen strong growth in greenfield investments across sectors such as semiconductors, electronics, electrical equipment, EV components and basic metals.

At the same time, outward FDI from India averaged USD 22 billion during FY24-FY25, marking a 58 per cent increase over the average of USD 14 billion seen during FY21-FY23.

So this showed that the Indian firms expanded their global footprint, particularly in Europe, South America and Africa, investing in sectors including telecom, automotive, energy, defence, pharma, ports and steel.

The report also pointed out that the five-year moving average of global FDI inflows shows a clear downward trend over the past decade.

So the report highlighted that while the global investment environment remains challenging, India's ability to attract healthy levels of gross FDI reflects its relative strength as an investment destination amid global uncertainty.

- ANI

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Reader Comments

P
Priya S
Good to see the numbers holding up. But I hope this FDI is creating quality jobs on the ground and not just staying in financial circuits. The real test is employment generation and skill development for our youth.
D
David E
As an investor watching from Singapore, India's consistency is impressive. The data shows resilience. The outward FDI jump is also telling - Indian companies are becoming global players. A positive sign for the ecosystem.
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Shreya B
The numbers are healthy, yes. But we must also look at the quality and sectors. Investment in manufacturing and electronics is great, but we need equal focus on healthcare, education, and sustainable tech. Let's not just chase big numbers.
R
Rohit P
This is the result of policy stability and the push for 'Make in India'. When the world is uncertain, investors look for a large, stable market with growth potential. We have that. Jai Hind! 🙏
M
Michael C
Interesting report. The contrast with global trends is stark. It underscores India's demographic advantage and consumption story. The key will be maintaining this momentum through infrastructure development and easing compliance.

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