📈 Developing Asia Leads Global FDI; South Asia Growth Driven by India

• Overall Figures: Developing Asia remained the world's largest foreign direct investment (FDI) destination in 2025, receiving US$ 644 Bn. This accounted for roughly 40% of global FDI and over 70% of total flows into developing economies, based on UNCTAD's World Investment Report 2026. • Subregional Shifts: While inflows declined in East Asia, they surged in South-East Asia, South Asia, West Asia, and Central Asia. South-East Asia emerged as the largest subregional recipient, while South Asia's growth was heavily driven by a 44% spike in FDI inflows into India. • Sector & Industry Focus: Global greenfield investments are rapidly shifting toward strategic sectors like semiconductors, digital infrastructure, artificial intelligence, advanced manufacturing, and energy-transition technologies—together commanding 44% of global greenfield investment in 2025 (up from 16% five years ago). • Market Realities: Concentration remains high, with eight of the top ten developing-economy FDI recipients located in Asia, commanding over 80% of regional flows. High-value sectors continue to see shifts; China's inflows softened from US$ 116 Bn to US$ 105 Bn, though it retained strong commitments in high-value R&D and pharmaceutical manufacturing. • National & Policy Context: In an increasingly competitive landscape, policymakers must shift from mere incentives to improving investment facilitation, domestic supplier ecosystems, reliable energy, logistics, and workforce skills to effectively link FDI to industrial upgrading and employment.