New data raises concerns over India as an investment destination. Trade pacts can offer a solution


Source: indianexpress.com indianexpress.com

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In 2024-25, foreign direct investment (gross) into India stood at $81 billion. But net FDI — essentially the difference between direct investment to and that by India — fell to just $353 million, down from $10.1 billion in the previous year. The reasons for this stunning collapse can be traced to an increase in investments by Indian firms abroad and greater repatriation/disinvestment by foreign firms from the country. Coming at a time of subdued domestic private investments, and when the country is trying to emerge as an attractive destination for firms moving operations out of China and integrate itself to...