After dominating international development policy for more than 20 years, sustainability and sustainable development have attracted more and more attention in policy and scholarly discourse. Significantly, recent events have emphasised the significance of pursuing sustainability and sustainable development even more. These include the adoption of a circular economy strategy, the move to renewable energy sources, the fight against climate change, and attempts to reduce emissions from fossil fuels. Foreign direct investment is one method of achieving sustainable development. Therefore, a sustainable relationship between FDI and sustainable development in India has been established in the subsequent pages of this paper and this causal relationship has been analysed. This causal relationship has been established via the vector error correction model. Through the findings, this paper doubles down on the idea that FDI is a great source for the introduction of sustainable development. However, it is also found that policymakers should focus on the implementation of those policies that utilise the benefits of FDI while simultaneously working against the negative environmental impacts and promoting the need for human development.