This research explores how a country’s ability to produce—its infrastructure, innovation, education systems, and economic resilience—affects progress toward the United Nations Sustainable Development Goals (SDGs). While it’s widely believed that stronger productive capacities help countries meet these goals, this study goes a step further by testing that assumption with real data. Using advanced statistical models, the researchers examined how eight key elements of the Productive Capacity Index (PCI) interact with various SDGs. The findings reveal a complex picture: boosting productive capacity can accelerate progress in areas like economic growth and education, but it can also unintentionally slow down efforts in environmental protection and reducing inequality. In other words, development isn’t one-size-fits-all—what helps in one area might hurt in another. This nuanced understanding is crucial for policymakers, especially in developing countries, who are trying to balance economic growth with sustainability and social equity. The study offers a new framework for designing smarter, more targeted interventions that take these trade-offs into account. It’s a timely contribution to global conversations about how to achieve meaningful, inclusive development in a rapidly changing world.