Presently, the economies of nations are significantly affected by their innovative activities, which indicates technological upgradation and development as the growth of human resources. To account for the effect of FDI on R&D activities in the economy, the study has used a panel data set over 2010–2022. The estimated model demonstrates strong explanatory power, with most factors promoting productive capacities in India. Those innovations are most effective in the economy after the make in India and COVID-19.