Published January 30, 2026 | Version v1
Journal article Open

Foreign Direct Investment (FDI) in India: Infrastructure Trends and Challenges

Authors/Creators

  • 1. Shri Shahaji Chhatrapati Mahavidhyalaya, Kolhapur (Maharashtra)

Description

Foreign Direct  Investment  (FDI)  is a crucial factor in accelerating  India’s  infrastructure development and overall economic expansion. This study examines patterns of FDI inflows, sector-specific investments, and regional distribution across India over the last twenty years. Key sectors attracting FDI include power, transportation, telecommunications, urban development, ports, airports, and renewable energy. Government programs such as Make in India, Smart Cities Mission, Bharatmala, and Sagarmala have enhanced investment opportunities and investor confidence. Despite this progress, foreign investors face challenges like complex regulatory requirements, land acquisition delays, inconsistent policies, financial constraints,  operational  difficulties,  and  environmental  compliance.  The  paper  suggests policy measures including streamlined regulations, transparent land acquisition procedures, fiscal incentives, promotion of public-private partnerships, technology transfer, skill development,   and   effective   project   monitoring.   The   findings   provide   insights   for policymakers, investors, and researchers to optimize FDI utilization, support sustainable infrastructure growth, and foster long-term economic development in India.

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