Context
According to UNCTAD’s Trade and Development Report 2026, India attracted 5.7% of global greenfield investments during 2020–25, more than double China’s share of 2.8%. The report highlighted the growing concentration of greenfield investments in strategic sectors, particularly Artificial Intelligence (AI) infrastructure.
Explanation
- Greenfield Investment refers to a form of Foreign Direct Investment (FDI) in which a foreign company establishes entirely new business facilities or operations in another country.
- It involves creating new factories, offices or production facilities, generating employment, infrastructure and productive capacity.
- Unlike Brownfield Investment, which involves acquiring or expanding existing facilities, greenfield investment establishes new operations from scratch.
- During 2020–25, India’s share of global greenfield investments was 5.7%, compared with Malaysia (4%), Indonesia (3.8%) and China (2.8%).
- Strategic sectors accounted for 44% of global greenfield investment in 2025, compared with 16% in 2020.
- AI infrastructure attracted the largest share of strategic greenfield investments (12.4%), followed by semiconductors (8.1%) and energy-transition technologies (7.8%).
- UNCTAD, established in 1964, is a UN body headquartered in Geneva, promoting trade, investment and development.
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