Author(s) :   Dr. Anshuman Magar¹, Prajot More², Vaibhav Pathare³, Shital Patale⁴

Abstract : The COVID-19 pandemic triggered unprecedented disruptions to global capital flows, with significant implications for India’s foreign direct investment (FDI) landscape. This study examines the structural impact of the pandemic on India’s FDI trends, highlighting sectoral realignments, shifts in investor geography, and evolving policy responses. Using data from DPIIT, RBI, and international investment monitors, the paper identifies a marked rise in digital economy investments—such as the landmark Jio Platforms deals—alongside a decline in traditional manufacturing FDI due to supply chain vulnerabilities. The analysis also reveals a geopolitical rebalancing of capital inflows, with increased interest from the United States and declining engagement from China. Government initiatives, including Production-Linked Incentive (PLI) schemes and liberalized norms, have played a pivotal role in supporting post-COVID recovery. The study concludes with targeted policy recommendations for both the government and investors, urging institutional resilience and adaptive risk frameworks. Findings offer insights for long-term strategic positioning of India in the evolving global investment architecture.

Keywords: FDI, Covid-19, FDI policy, Make in India, Digital economy.

DOI: 10.61161/ijarcsms.v13i5.11

Pages : 94-104

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