Business

Gujarat slipped from number one to number six in terms of foreign investment (FDI)

Disclosure from the report of Department for Promotion of Industry and Internal Trade

Gujarat, which topped the previous list of foreign direct investment, has suffered a lot in this list. According to the latest data by the Department for Promotion of Industry and Internal Trade (DPIIT), Gujarat has now come at the sixth position in the list of states attracting foreign investors. On the other hand, Gujarat is preceded by Karnataka, Maharashtra, Delhi, Tamil Nadu and Haryana in this matter.

According to the data, Karnataka is on top in terms of FDI in the year 2021-22 with Rs 1,62,830 crore. After this, Maharashtra is at number two with Rs 1,14,964 crore. Delhi came third with Rs.60,000 crore, Tamil Nadu with Rs.22,396 crore and Haryana fifth with Rs.20,971 crore. On the other hand, in the last financial year 2021-22, Gujarat was able to attract foreign investment of only Rs 20,169 crore. In this regard, experts say that despite changes in the political system in 2021-22 and the upcoming assembly elections, investors see Gujarat as a state with stable policies. According to data from DPIIT, run by the Ministry of Commerce and Industry, Gujarat’s performance in attracting foreign investment has declined eight-fold.

Compared to last year’s figures, Gujarat and Maharashtra are the only two states whose FDI inflows have declined. Among all the other states, Karnataka recorded a growth of 187 per cent, Delhi 50 per cent, Tamil Nadu 30 per cent and Haryana 67 per cent. Although Gujarat is doing very well in this sector with a lot of investment being domestic, its dependence on FDI is relatively low. It has not been a very attractive state for multinational companies.

In the last financial year (2021-22), there was a jump of 2 per cent in total foreign direct investment. According to DPIIT, a total investment of $ 84 billion came in the last financial year. During this period, FDI equity inflows declined by one per cent to $58.77 billion. Earlier, during the last financial year 2020-21, FDI equity inflow into the country was $ 59.63 billion.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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