Inside India newsletter: India’s investment appeal dims as firms and funds pivot to the U.S.

Hello, this is Priyanka Salve, writing to you from Singapore. Welcome to the latest edition of " Inside India " — your one-stop destination for stories and developments from the world's fastest-growing large economy. As global capital races toward America on AI boom and industrial revival, India's once-compelling investment story is facing uncomfortable questions. This week, I unpack how capital outflows risk upending India's ambition to become an economic powerhouse. Read on! Any thoughts on today's newsletter? Share them with the team. The big story A booming tech and artificial intelligence sector and the "America First" policy push are bringing global investors and firms to the U.S., including Indian businesses, dimming the appeal of the world's fastest-growing economy and its consumption-led narrative. Several Indian conglomerates have announced a fresh round of investments in the U.S. this year, even as policymakers back home express concerns over weak private sector investment domestically. Earlier this month, India's chief economic advisor reportedly criticized private firms for failing to step up capital expenditure despite strong profitability. Indian corporates instead are deploying capital in the U.S. DELHI, INDIA - MAY 13: People move through a crowded wholesale market area in Old Delhi, India, on May 13, 2026 . …