Economic relations with China could open up space for manoeuvre

Over the past few years, FDI flows to developing economies have been slowing down. In 2023, they fell by 6 per cent, and in 2024 by 2 per cent as per the Global Investment Trends Monitor by UNCTAD. In India, FDI flows had hit a record high of $84.8 billion in 2021-22. Capital flows slowed thereafter, touching $71.2 billion in 2023-24 and in the first nine months of this year (April-December), stood at $62.4 billion. Some countries have, in the recent past, been more successful than India in emerging as an attractive investment destination, especially for global firms looking to…