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India has emerged as a strategic growth market, drawing strong global foreign direct investment (FDI) interest and rising investor confidence amid ongoing global economic and geopolitical realignment, according to business leaders surveyed in the seventh wave of Bloomberg Media’s Global Foreign Direct Investment Outlook.

Drawing on the insights of 2,600 senior business decision-makers across 31 key markets around the world, the seventh wave of Bloomberg Media’s Global FDI Outlook, titled, “Rebalancing in Real Time: How Shocks Are Shaping the Global Investment Landscape,” sheds light on the state of FDI around the world amid macroeconomic and geopolitical uncertainty, and uncovers the key risks and concerns influencing FDI decision making, along with key drivers and opportunities.

Across all markets surveyed, geopolitical concerns surged in prominence, overtaking inflation and supply chain disruptions as the top investor concern. Thirty-eight percent of global respondents now identify US-China relations as a critical risk, a six-point rise from 2023, with 37% citing tariffs. Despite these tensions, appetite for international expansion remains robust, holding steady globally at 76%, just one percentage point below 2023.

Against this backdrop, India stands out as strategic growth market, attracting strong global FDI interest and rising investor confidence. The study reveals India holds strong investment appeal when compared with other emerging markets, with more than nine-in-ten (93%) investors considering India expressing their interest as high, and 61% agreeing that trade tensions have increased their trust in India as an FDI destination.

“Rising investor confidence and strong FDI interest in India underscores the country’s growing importance as a strategic global investment destination,” said Michelle Lynn, Global Head of Data and Insights at Bloomberg Media. “As global investors recalibrate their strategies in response to geopolitical and economic volatility, India’s strong market potential, youthful workforce, and robust industry growth are increasingly seen as key advantages in long-term investment planning.” 

Key findings from India-focused investor sentiment reveal: 

* FDI momentum fueled by market growth, talent, and tech – Among investors considering India, the primary investment motivations include the county’s economic growth potential (32%), its youthful and expanding workforce (26%) and the scale of its domestic market (26%). Technology and innovation also play a significant role, with nearly one quarter of investors citing opportunities in the technology sector (22%) and digital transformation (20%) as key reasons for their interest.

*  Skilled talent, security and policy consistency drive FDI to India – India-focused investors prioritize skilled engineering talent for manufacturing (84%), regional peace and security (84%), and policy consistency (83%). Economic fundamentals are also key drivers, with corporate tax policy, access to finance, and FDI incentives all ranked highly in importance, each cited by 77% of India-focused investors.

* Investors prioritize advance technology and IT – Over half (54%) of India-focused investors prioritize the advanced technology sector for investment over the next one to three years, with 45% citing IT/computer technology as their sector of investment focus. Notably, investors considering India prioritize IT and computer technology industry significantly (13%) more than Asia-Pacific focused investors.

* FDI projects focused on long-term investment – Investors considering India identify expanding into new territories (61%), developing local supply chains (50%), constructing new commercial facilities (43%), and enhancing manufacturing capabilities (43%) as their top expansion priorities, reflecting strong investor confidence in India’s long-term growth potential.

* Delhi and Maharashtra lead investor interest – The study uncovered strongest investor interest in Delhi (69%) and Maharashtra (58%). Southern states such as Karnataka (26%) and Tamil Nadu (23%) also attracted notable levels of interest. Punjab (28%) registered relatively high consideration as well.

Lynn notes that the study clearly highlights investor confidence in India’s long-term growth potential, driven by its expanding market opportunities and strategic economic positioning.

“India’s FDI appeal is rooted more in its long-term potential which goes beyond short-term opportunity,” said Lynn. “According to projections by the International Monetary Fund, India is poised to become the world’s third-largest economy by 2028. Our respondents’ sentiment clearly aligns with this outlook, with many investors actively positioning themselves to grow with the market.”

“Our study shows investors view India as a stable, innovative, and scalable market for future growth. Investor confidence is clearly reflected in global FDI trends, fueled by India’s fast-growing domestic market, its deep pool of skilled talent, and its leadership in technology and manufacturing,” said Lynn.

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