India climbed two spots to become the world's 11th largest FDI recipient in 2025, with inflows surging 44 per cent to $38.89 billion from $27.09 billion a year earlier, according to UNCTAD's World Investment Report. The jump was powered largely by Alphabet Inc.'s $14.5 billion mega data centre project, the single largest greenfield announcement globally. Poland's Hynfra added a $4 billion commitment in Andhra Pradesh.

The surge contrasts with a muted global backdrop. FDI into developing economies rose just 2 per cent, while Asia managed a 3 per cent gain. China saw inflows slip to $104.66 billion from $116.24 billion, and the United States — still the top destination — recorded a 2 per cent decline to $277 billion. UNCTAD flagged that India's greenfield pipeline beyond the Alphabet deal is thinning, citing tariff uncertainty and supply-chain realignment as drags on new manufacturing commitments.

Outbound investment tells a different story. India's outward FDI jumped 47 per cent to $35.66 billion, lifting the country to 18th among global home economies. The Rana Group's $10 billion automotive plant in the UAE ranked among the year's five largest cross-border greenfield projects. Overseas greenfield announcements by Indian firms rose 41 per cent to $25.29 billion.

The data reveals a two-speed reality: a handful of mega deals mask a broadening slowdown in new project commitments. Investors should watch whether policy reforms can convert headline inflows into sustained manufacturing capacity or if the Alphabet-driven spike proves a one-off.