Gujarat saw an astronomical increase in Foreign Direct Investment (FDI) last year, the latest data by the Ministry of Commerce and Industry has revealed. Registering a 55% increase in the FDI inflow during FY 2023-24 as compared to the previous year, the state received a whopping $7.3 bn in FY 2023-24. Notably, in FY 2022-23, it received merely $4.7 bn.
With the FDI inflow of $7.3 bn, Gujarat moved ahead of Karnataka and Delhi to reach the second spot in the country. It topped the chart in the annual increase in FDI inflow this year by recording a jump of $2.6 bn. Gujarat has also shown consistent growth in attracting FDI for three consecutive financial years by securing investments of $2.7 billion in FY2022, $4.7 billion in FY2023 and $7.3 billion in FY2024.
Aligned with PM Narendra Modi’s vision of Viksit Bharat, Chief Minister Shri Bhupendra Patel has enacted numerous industry-friendly policies and decisions, leading to significant positive outcomes in the state.
Speaking about the consistent performance of Gujarat in attracting FDI inflow, Shri Balvantsinh Rajput, Minister of Industries and Mines, Govt. of Gujarat, said, “Under the guidance of Hon’ble Prime Minister Shri Narendra Modiji, our Chief Minister Shri 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 emerging industries like semiconductors and other promising sectors.”
Factors Fuelling FDI Inflow in Gujarat
Among the major factors that have 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.
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.
The biennial Vibrant Gujarat Summits that Hon’ble Prime Minister Shri Narendra Modi had first pioneered during his tenure as Gujarat CM has also played a significant role in bringing new investment. Notably, the first Vibrant Summit during the Azadi Ka Amrit Kaal, held in January this year, was also highly successful.
FDI Inflow: Top Five States
With a total FDI inflow of $15.1 bn in 2024, Maharashtra sits on the top spot followed by Gujarat with $7.3 bn. Karnataka, Delhi and Telangana in the same order are on the third, fourth and fifth spot with the respective FDI inflows of $6.6 bn, $6.5 bn and $3 billion.