Abstract This study evaluates the efficiency of the Make in India initiative by using sectoral as well as macro data, which shows a paradox that there is growth in GDP of a country, but a sharp decline in the foreign investment retention rate in the Indian economy from 2014 to 2025. This shows that the contribution of FDI in growth of India’s GDP is questionable. Net FDI to GDP ratio declines from 1.71% to 0.02% in 2024-25. The sectoral allocation shows that there is a huge growth in FDI surge in certain capital-intensive sectors, but a decline in labour-intensive sectors like textiles and chemicals, which can lead to a phenomenon called Jobless growth. By attracting large investments, India has achieved the first stage of the 3i strategy (Investment) of world bank due to huge investments into infrastructure (Ports/Energy). However, the low growth of FDI inflows in sectors like Chemicals, Textiles & construction development indicates a failure in the second i (infusion of technology). Without achieving the second stage of infusion, the third stage of innovation cannot be achieved, and this will lead India to remain trapped in the middle-income trap. The increase in repatriation to $ 51486 million in 2024-25 from $ 65 million in 2004-05 is driven by Private Equity and Venture Capital exits. An investor has to exit from the investment he made to earn certain returns on investments after a certain period. There was a peak increase in the Net FDI to GDP ratio in the initial period of Make in India, showing strong global interest in India and high capital absorption. Figure 3 illustrates that after the period of 2019-20 (post-pandemic period), there is a sharp decline in net FDI inflows despite the continuous increase in India’s GDP.