India faces a stiff challenge to attract capital flows as the global investment landscape is being reshaped by the artificial intelligence boom, renewed manufacturing ambitions in developed economies and the increasing weaponisation of global supply chains, according to the India Monthly Economic Review report released by the Finance Minister. This comes as countries increasingly seek to secure their supply chains, adding to competition for global capital. India, like other developing economies, therefore faces a stiff challenge in attracting capital flows, it said.