Which Countries Invested the Most Abroad in 2024 and Where does India Rank in Global FDI Outflows?

Key Takeaways

• The US led global FDI outflows in 2024 with $266 billion, followed by Japan at $204 billion and China at $163 billion. Six countries sent out over $915 billion, more than half of the $1.7 trillion invested across borders that year.
   
• India’s outward investment jumped from $14 billion in 2023 to $24 billion in 2024, putting it at rank 20 among the world’s biggest sources of foreign investment.

US Invested $266 Billion Abroad in 2024: Why Are the Largest Economies Slowing Down their Investment Overseas? 

Six countries are exporting over half the world’s cross border investment. That is not random. The numbers indicate where capital is focused, where companies are large enough to grow abroad and which governments will encourage it. India isn’t quite in that group of six, but its getting closer than it was three years ago. 

The problem for India is timing. US companies pulled back too, with American FDI outflows falling more than 25% from 2023. Over half of US greenfield investments went into America itself rather than abroad. When the world’s biggest investor turns inward, less money flows to places like India.

India Sent $24 Billion Abroad in 2024: Is Outward Investment helping or hurting the Indian Economy? 

Here is where the top investors stood in 2024:

Indian companies are now buying copper mines in Zambia. Greenfield projects by Indian investors went up 20% in 2024. That is Indian companies growing globally, which builds long-term returns. But every rupee going abroad is a rupee not building factories or hiring workers at home.

On the other side, India pulled in $50 billion in FDI equity inflows in FY25, up 13% from the previous year. So, India is both sending and receiving more capital. That is what a maturing economy looks like.

Why is India Still Not in the Top 10 for Global FDI and What Will it take to Get there?

India’s new project announcements from foreign investors jumped 28% to $110 billion in 2024, pushed by semiconductor and supply chain deals. That is a strong pipeline. But pipeline and actual investment hitting the ground are two different things.

Luxembourg, Hong Kong, and the British Virgin Islands rank high on this list not because their companies are giants. They rank high because global firms route money through them for tax reasons. 

Companies use these locations for tax, regulatory, or corporate structuring purposes. India cannot compete on that basis and should not try to. Its pitch has to be market size, workforce, and speed of doing business.

Conclusion

India went from rank 23 to rank 20 in outward FDI in just one year. The inflow story is also improving. But there’s still a significant gap between India and the top ten, and closing that gap is down to one thing. Getting ease and speed of doing business in India up and running. 

FAQs

Which country had the largest outward flow of foreign investment abroad in 2024?

The US had the biggest outflow of foreign investment abroad, at $266 billion.  Japan was the second largest at $204 billion followed by China at $163 billion. The 3 countries alone accounted for $630 billion, over one third of the $1.7 trillion in global cross-border investment in 2024.

What were the largest countries investing into India and the amount India received in 2024?

The United States, Singapore and Mauritius among other sources of FDI inflows into India. India received $50 billion of FDI equity inflows for FY25, up by 13%. However, it was 20th in the world for outward flows in 2024 with $24 billion sent out of the country as against $14 billion in 2023.