This paper explores the nexus between economic growth, temperature, environmental degradation, and Foreign Direct Investment (FDI) in India. It examines how FDI impacts environmental quality amidst climate change challenges. Despite the increasing importance of climate-aligned investments, Emerging Markets and Developing Economies (EMDE), including India, face funding constraints exacerbated by post-pandemic economic pressures. This study analyses India's vulnerability to climate change and investigates how economic growth and FDI intersect with environmental degradation. Through empirical analysis, the research aims to offer insights for policy formulation towards sustainable development and climate-resilient strategies in India.