Global investment is shifting towards strategic sectors such as AI infrastructure. What policy architecture does India need to capture this shift?

UNCTAD data show that strategic sectors rose from 16% to 44% of global greenfield investment between 2020 and 2025. About three-fifths of this went to AI infrastructure: data centres, cloud and the power systems behind them [1]. India led on overall greenfield share (5.7% against China's 2.8%), but strategic capital stays concentrated in Europe and North America [2]. To capture it, India needs a policy architecture built in layers.

1. Compute and digital infrastructure

• Scale up the IndiaAI Mission (₹10,372 crore), which has brought 45,000+ GPUs onto a shared compute platform [3]. Use this subsidised compute to draw in anchor tenants for hyperscale data centres.
• Give data-centre parks single-window clearances for land and power, and access to long-term credit.

2. Hardware and supply-chain depth

• Extend the India Semiconductor Mission (₹76,000 crore; 10 units approved) [3] beyond fabs into chip design, packaging and components, using PLI-type support.
• Secure critical-mineral partnerships to supply fabs and battery value chains.

3. Energy enablers

• AI infrastructure depends on its power systems [1]. Data centres should get round-the-clock green power, green open access and water-recycling norms.

4. Regulatory and investment governance

• Make data rules predictable under the DPDP Act, 2023, so cloud investors can price risk.
• Use calibrated screening. Under Press Note 3 (2020), FDI from countries sharing a land border with India needs government approval [4]. Proposals from trusted partners and component joint ventures should be fast-tracked.
• Track net flows, not just gross. Repatriation and disinvestment reached $51.5 billion in FY25 [5]. DPIIT and the RBI should report greenfield, M&A and exit data separately.

5. Demand and human capital

• Investors who come to sell in India need stable demand. UNCTAD flags strain on consumption from higher prices [2], so inflation control is also investment policy.
• Build a pipeline of AI and chip engineers through courses designed with industry.

Compute + Chips + Clean power + Credible rules + Stable demand
                → Strategic-sector greenfield FDI

Fig: India's strategic-investment stack

These five layers work only together; no single scheme can attract this capital on its own. The missions should be judged by India's share of strategic greenfield investment rather than overall volume. That would turn India's current lead into technological depth, advancing Atmanirbhar Bharat and SDG 9 on resilient infrastructure and innovation.