Investments by state-owned investors (SOIs), including sovereign wealth funds (SWFs), in India fell sharply in 2025, falling by more than 70% year-on-year. Global long-term investors cut exposure to emerging markets and pivoted capital toward developed economies, as per Global SWF data. The move could be attributed partly to high interest rates and geopolitical uncertainty, besides a growing investment focus on sectors such as digital infrastructure, data centres and AI. Total capital deployed by state-owned investors in India fell to $5.7 billion in 2025 from $20.1 billion in 2024, marking one of the steepest annual declines in recent years.