India Accounts For 5.7% Of Global Greenfield Investment During 2020-25: UNCTAD

New Delhi, Oct 10 (KNN) India accounted for 5.7 per cent of global greenfield investment during 2020-25, more than double China’s share of 2.8 per cent, according to the latest Trade and Development Report 2026 released by the United Nations Conference on Trade and Development (UNCTAD).

Malaysia accounted for 4 per cent of global greenfield investment during the period, followed by Indonesia at 3.8 per cent, the report said.

Greenfield investment involves companies establishing new business operations in another country. The report noted that such investments are increasingly shifting towards strategic sectors, although capital remains concentrated in Europe and North America.

Strategic sectors accounted for 44 per cent of global greenfield investment in 2025, up from 16 per cent in 2020, reflecting their growing importance, reported The Hindu.

AI Infrastructure Leads Strategic Investments

Artificial intelligence (AI) infrastructure and related technologies attracted the largest share of strategic investments, accounting for 12.4 per cent of the total USD 845.7 billion in global greenfield investment during 2020-25.

The semiconductor value chain accounted for 8.1 per cent, while energy transition technologies and services attracted 7.8 per cent.

Europe accounted for 28.4 per cent of strategic investment, followed by North America at 28 per cent. Among developing economies, developing Asia attracted 26.5 per cent, with China, India, Indonesia, Malaysia and Singapore emerging as major destinations.

The geographic concentration of investment highlights challenges for the Global South, particularly least developed countries, in integrating into strategic industries, the report said.

India Steps Up Industrial Policy Measures

India ranked among the leading countries in industrial policy implementation over the past two decades. Between 2008 and 2021, the country implemented 1,416 industrial policy measures, behind only China and the United States.

During 2022-25, India implemented 707 measures. However, it ranked behind the US, China, Australia and Brazil during this period as industrial policy activity accelerated globally.

China and India continue to outperform, although along different structural paths, the report noted.

Growth Outlook Remains Strong Amid Cost Pressures

India remains the fastest-growing major economy, with GDP projected to expand by 7.3 per cent in 2026 and 6.8 per cent in 2027, supported by domestic demand, expanding manufacturing capacity and public infrastructure programmes.

These factors are sustaining growth despite the country's heavy reliance on oil imports, the report said.

However, rising prices and input costs are beginning to weigh on domestic consumption. Household consumption is estimated to grow by 6.9 per cent in 2026 and 5.6 per cent in 2027, marking a slowdown from previous years, according to UNCTAD.

(KNN Bureau)