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Gujarat Government Gandhinagar: According to new data released by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India, Gujarat has witnessed the highest growth in foreign direct investment (FDI) inflows into the country this year.
Gujarat has received $2.6 billion more FDI in FY24, which is 55 per cent more than the $4.7 billion FDI inflow received in the previous financial year. Thus, Gujarat received new FDI of $7.3 billion in FY24, surpassing Karnataka and Delhi and securing the second position in FDI inflows.
In line with Prime Minister Narendra Modi's vision of a developed India, Gujarat Chief Minister Bhupendra Patel has implemented several industry-friendly decisions and policies in the state, resulting in direct investment of $2.7, $4.7 and $7.3 billion in Gujarat in three consecutive financial years (2022, 2023, 2024) respectively, registering a rise in foreign investment.
Regarding the steady flow of FDI in Gujarat, Gujarat's Industry and Mines Minister Balwant Singh Rajput said, “Under the guidance of Hon'ble Prime Minister Shri Narendrabhai Modi, our Chief Minister is ensuring that state-of-the-art industrial infrastructure facilities are available and industry-friendly policies for investment and business are available in the state. With the special efforts of Prime Minister Narendra Modi and the Chief Minister, Gujarat has also received huge investments in key sectors like semiconductors.”
Reasons for continued FDI inflow growth in Gujarat
The major reasons for the rise in FDI inflows in Gujarat include state-of-the-art industrial infrastructure, industry-friendly policies, and ease of doing business. Cluster-based industrial estates like GIFT City, Sanand GIDC, Dholera SIR (Special Investment Region), and Mandal Bachhraji SIR also play a key role in FDI inflows. This is the reason why Gujarat has also received massive investments in big projects like the semiconductor sector in FY24.
In addition, effective implementation of sector-specific policies such as renewable energy, semiconductor and electronics policies in the last three years has also led to an increase in FDI inflows. Various economic incentives by the government for setting up new plants for industries, ease and transparency in land allotment and cost reduction efforts have also encouraged FDI inflows into Gujarat. Apart from this, the Vibrant Gujarat program has also played a major role in attracting investments to the state. The first Vibrant Summit of Azadi Ka Amrit held in January this year has also been a great success.
Top 5 states in the country for FDI inflows
Maharashtra tops the list with total FDI inflows of $15.1 billion in FY24, followed by Gujarat with $7.3 billion. Karnataka, Delhi and Telangana are ranked third, fourth and fifth with FDI inflows of $6.6 billion, $6.5 billion and $3 billion, respectively.
