FDI inflows decline 43%, India drops to 15 in UNCTAD’s FDI rankings

India drops 7 ranks in UNCTAD Global FDI ranking

India slipped seven ranks to 15 in the World Investment Ranking in 2023 as foreign direct investment inflows fell 43 percent to $28 billion, a report released by the United Nations Conference of Trade and Development (UNCTAD) showed on June 20.

The country was ranked eighth last year, as it attracted inflows worth $48 billion.

While India’s rank slipped, Brazil, Canada, Germany and Mexico moved up the rank in the global index, with Brazil becoming the fifth top FDI destination.

The top order remains unchanged with the US attracting highest FDI at $311 billion, followed by China, Singapore and Hong Kong, China.

However, despite the fall in global rankings according to value, India remained one of the top destination in terms of greenfield project announcements and international project deals.

The country ranked second in international project deals securing 163 deals in 2023, topped only by the US at 334.

In terms of greenfield projects, India was ranked fourth with 1,058 projects, after the US, the UAE and the UK.

India moved up the ranks in terms of outflows as well, with the country ranking 20th in 2023 compared with 23rd in the previous year. The amount of outflows increased to $15 billion from $13 billion in the previous year.

In 2023, seven economies, namely, Argentina, Brazil, China, India, Mexico, Türkiye and UAE, together with ASEAN member States, rolled out national strategies or frameworks on sustainable finance, according to the report.

“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 noted.

As per data released by the department for promotion of industry and internal trade, India’s FDI equity inflows dropped 3.5percent between FY24 and FY23.