India's global share in foreign direct investment (FDI) plunged to 2.1% in 2023, down from 6.5% in 2020, according to UNCTAD's World Investment Report 2024. The country fell to 16th place in attracting FDI, compared to 8th place in 2022.
FDI as a percentage of GDP also decreased to 1.99% in 2023-24 from 3.06% in FY 2020-21. Furthermore, FDI inflows remain concentrated, with Maharashtra, Gujarat, Karnataka, and Tamil Nadu receiving a large portion. The service sector attracted 40.9% of FDI between FY15-FY24, while manufacturing lagged behind at 25.1%.