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The article discusses the current state of foreign direct investment (FDI) in India, highlighting progress in infrastructure, manufacturing, and attracting investments. However, it faces challenges due to changing priorities of global capital, which now tends to favor economies that combine technology, innovation, financing, and industrial policies—not just cost reductions. Despite a 44% increase in FDI inflows in India in 2025, reaching $39 billion, the overall volume does not guarantee sustained competitiveness, especially as investments remain concentrated in two main sectors: data centers and green hydrogen. India faces difficulties in meeting quality standards and speed of execution, along with land constraints and weak inter-state competition. The public sector's focus on high levels of infrastructure financing further underscores the need for developing specialized skills and offering competitive financing to achieve a sustainable competitive edge.
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