New Delhi, June 11 -- In December 2024, the ministry of commerce, in a public statement, noted what it called a "remarkable milestone" in the country's "economic journey", with total inflows of foreign direct investment (FDI) hitting a cumulative amount of $1 trillion since 2000. "Such growth reflects India's growing appeal as a global investment destination, driven by a proactive policy framework, a dynamic business environment, and increasing international competitiveness," the ministry said in its press release.

On the face of it, there was indeed cause for celebration. So-called 'gross' flows-what the government was highlighting-amounted to $81 billion in 2024-25, up over $10 billion from a year earlier, and the third highest annual ...