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Key Points

India has become the top destination for greenfield investments in the Global South, attracting $114 billion in digital economy sectors over five years. The RBI highlights manufacturing and business services as key contributors, with net FDI doubling in April 2025. Foreign and domestic investors continue to show strong confidence in Indian markets. These trends solidify India’s position as a major player in the global digital economy.

Key Points: India Leads Global South with $114B Digital Economy Investments

  • India leads Global South with $114B digital economy FDI
  • Manufacturing and business services drive 50% of inflows
  • Net FDI doubles to $3.9B in April 2025
  • FPIs and DIIs show strong market confidence
2 min read

India emerged top destination in global south for greenfield investments with USD 114 bn inflows in last 5 yrs: RBI

RBI reports India tops Global South in greenfield FDI at $114B, with manufacturing and business services driving growth.

"India ranked 16th globally in FDI inflows and recorded USD 114 billion in greenfield investment in digital economy sectors over the last five years - RBI"

Mumbai, June 26

India has emerged as the top destination in the Global South for greenfield investments in the digital economy, according to a recent report released by the Reserve Bank of India (RBI).

The report stated that India received a total of USD 114 billion in greenfield investment in digital economy sectors between 2020 and 2024. This is the highest among all countries in the Global South and highlights India's growing role in the global digital economy.

RBI stated, "India ranked 16th globally in FDI inflows and recorded USD 114 billion in greenfield investment in digital economy sectors over the last five years (2020-2024), the highest among all countries in the Global South".

The report also highlighted that in April 2025, gross inward FDI stood at USD 8.8 billion, which is a significant rise compared to USD 5.9 billion in March 2025 and USD 7.2 billion in April 2024.

The manufacturing and business services sectors in India were the key contributors, accounting for nearly half of the FDI inflows in April.

The report also mentioned a rise in net outward FDI, with Indian companies increasing their investments abroad. At the same time, there was a moderation in repatriation, meaning fewer funds were withdrawn or returned from overseas investments.

The top sectors for outward FDI included electricity, gas and water supply, along with financial, insurance, and business services. Key countries where Indian businesses invested were Singapore, Mauritius, and Germany.

As a result of these movements, India recorded net FDI inflows of USD 3.9 billion in April 2025 alone. This figure is more than double the net inflows of April 2024, indicating improved investor confidence and stronger economic engagement.

For the Foreign Portfolio Investors (FPIs), the report mentioned that it also continued to show confidence in Indian markets.

During the period from May to June 20, 2025, FPIs were net buyers, investing Rs 24,966 crore. Domestic institutional investors (DIIs), including mutual funds and insurance companies, were also net buyers in the Indian equity market, with investments totalling Rs 1,24,429 crore during the same period.

These trends reflect the growing strength of India's digital economy and its position as a major investment destination.

- ANI

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Reader Comments

R
Rajesh K.
This is fantastic news! 💯 India's digital economy is truly shining on the global stage. The $114 billion investment shows foreign investors recognize our potential. But we must ensure these funds actually create jobs and infrastructure, not just benefit a few big corporates. #MakeInIndia
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Priya M.
While the numbers look impressive, I wonder how much of this investment is reaching smaller cities and rural areas? The digital divide is still huge in India. Hope the government focuses on equitable distribution of these benefits across all states.
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Amit S.
Great to see India leading in the Global South! 🇮🇳 The manufacturing sector growth is particularly encouraging. But we must be careful about over-dependence on foreign investment. Need to boost domestic innovation and startups too. #VocalForLocal
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Sunita R.
The rise in outward FDI is interesting - Indian companies expanding globally is a sign of maturity. But hope RBI keeps monitoring these investments carefully. We've seen cases like Kingfisher Airlines where foreign ventures went wrong. Caution is needed!
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Vikram J.
These numbers prove that despite global slowdown, India remains a bright spot! The digital economy boom is creating so many opportunities for our youth. Just hope the education system keeps pace with these changing needs. Skill development is key!
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Neha P.
The FPI and DII numbers show strong confidence in Indian markets. But as a small investor, I worry about volatility. The government should ensure stable policies so these investments benefit long-term growth, not just create short-term bubbles.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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