States/UTs Attracting Highest FDI Equity Inflow

Mar 11 2024 06:38 PM IST
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FDI (Foreign Direct Investment) is a form of investment where a company or individual from one country establishes business operations or acquires assets in another country, with a significant degree of control or ownership. It plays a vital role in stimulating economic growth, fostering technological transfer, and enhancing global integration.

In the landscape of foreign direct investment (FDI) in India, certain states and union territories have emerged as magnets, drawing substantial equity inflows. The latest data reveals a clear hierarchy of FDI attraction among these regions, with Maharashtra leading the pack.

According to recent figures released by the Ministry of Commerce and Industry, Maharashtra stands tall with a staggering FDI equity inflow of ₹4,72,830 crore. This robust influx underscores the state’s appeal as a premier destination for foreign investors, driven by factors such as its thriving commercial hubs, robust infrastructure, and conducive business environment.


Following closely behind is Karnataka, registering an impressive FDI equity inflow of ₹3,58,517 crore. The southern state’s dynamic ecosystem, anchored by technology hubs like Bengaluru, continues to entice global investors seeking opportunities in sectors ranging from IT and biotechnology to manufacturing and services.


Gujarat secures the third position with FDI equity inflows amounting to ₹2,57,909 crore. Renowned for its proactive industrial policies and world-class infrastructure, Gujarat maintains its status as a favored destination for both domestic and foreign investment, particularly in sectors such as petrochemicals, pharmaceuticals, and textiles.


The national capital, Delhi, follows suit with FDI equity inflows reaching ₹2,15,676 crore. Despite its compact size, Delhi’s strategic location, coupled with its status as a political and economic nerve center, continues to attract significant investment across diverse sectors, including real estate, finance, and tourism.


Further down the list, Tamil Nadu, Haryana, Telangana, Jharkhand, Rajasthan, and West Bengal contribute to India’s FDI landscape with varying degrees of inflows, reflecting the geographical diversity of investment opportunities across the country.


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