Mumbai (Maharashtra) [India], 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 At the same time, there was a moderation in repatriation, meaning fewer funds were withdrawn or returned from overseas investments.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.
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