Image Source : PTI Prime Minister Narendra Modi with Gujarat Chief Minister Bhupendra Patel
Gujarat marked a significant leap in the annual increase in the FDI inflow during the Financial Year 023-24 and recorded a jump of USD 2.6 billion, according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, Government of India.
According to a statement, Gujarat registered an increase of 55 per cent in the FDI inflow during FY 2023-24 as compared to the inflow during FY 2022-23. The state got USD 7.3 billion in FY 2023-24 as compared to the USD 4.7 billion received in FY 2022-23.
“With the FDI inflow of USD7.3 billion, Gujarat moved ahead of Karnataka and Delhi to reach the second spot in the country,” the statement said.
Gujarat has shown a “consistent growth” in attracting FDI for three consecutive financial years by securing investments of USD 2.7 billion in FY 2022, USD 4.7 billion in FY 2023 and USD 7.3 billion in FY 2024, it added.
What did the Minister of Industries and Mines say?
“Under the guidance of Hon’ble Prime Minister Narendra Modiji, our Chief Minister Bhupendrabhai Patel is ensuring that every possible mechanism that facilitates investment and business is in place ranging from state-of-the-art industrial infrastructure to business-friendly government policies. Due to the dedicated efforts of the Prime Minister and the Chief Minister, Gujarat is also attracting significant investment in the emerging industrieslike semiconductor and other promising sectors,” Balvantsinh Rajput, Minister of Industries and Mines said.
Factors fuelling FDI inflow in Gujarat
According to the statement, among the major factors that played a role in attracting FDI are Gujarat’s state-of-the-art industrial infrastructure, industry-friendly policies, and consistent enhancement in ease of doing business.
“Cluster-based industrial regions such as GIFT City, Sanand GIDC, Dholera SIR (Special Investment Region) and Mandal Bechraji SIR also play a significant role in attracting the investors. Marquee projects such as multiple semiconductor manufacturing plants have also played a huge role in attracting foreign investment,” the statement said.
“Launch and effective implementation of new sector-specific policies in areas such as renewable energy, semiconductor, and IT in the last three years have also created a favourable investment climate. Financial incentives to entrepreneurs and small industries setting up base in Gujarat, expedited allotment of land, power connection and other business friendly measures have also played a prominent role in bringing new investment,” it added.
The biennial Vibrant Gujarat Summits that PM Modi had first pioneered during his tenure as Gujarat CM has also played a significant role in bringing new investment, it noted. The first Vibrant Summit during the Azadi Ka Amrit Kaal, held in January this year, was also highly successful, it highlighted.
FDI inflow: Top five states
With a total FDI inflow of USD 15.1 billion in 2024, Maharashtra sits on the top spot followed by Gujarat with USD 7.3 billion. Karnataka, Delhi and Telangana in the same order are on the third, fourth and fifth spot with the respective FDI inflows of USD 6.6 billion, USD 6.5 billion and USD 3 billion.
