Maharashtra still tops in attracting FDI with inflow of Rs 62,425 crore

While the ruling alliance and the opposition continue their war of words over the flight of five key projects to other states, Maharashtra continues to top in attracting foreign direct investment (FDI) in the country.

According to a fact sheet of the Department for Promotion of Industry and Internal Trade (DPIIT) for the half year ending September 2022, the state attracted the highest FDI equity inflow of Rs. 62,425 crore (about U.S. $8,000 million) of the country’s total of Rs. 2,10,156 crore.

Maharashtra also tops in the cumulative FDI equity inflow between October 2019 and September 2022 with a total of Rs. 3,51,331 crore. The FDI came in different sectors like automobiles, services, construction (infrastructure), computer software and hardware, drugs and pharmaceuticals, development (townships, housing, built-up infrastructure) and chemicals.

The runner ups in FDI race

Karnataka took second place with an FDI equity inflow of Rs. 41,678 crore ($5,329 million) in April-September 2022 and cumulative inflow of Rs. 2,93,106 crore (October 2019-September 2022.

Gujarat, where the $20 billion Vedanta Foxconn semiconductor project is now proposed, was third with FDI equity inflow of Rs. 26,866 crore ($3,473 million) in the current half-year and a cumulative Rs. 2,28,833 crore.

Expert opinion

“Over the decades, Maharashtra has developed the most advanced industrial infrastructure and skilled manpower,” said Sushil Jiwarajka, former Chairman of the western region chapter of the Federation of Indian Chambers of Commerce and Industry.

“With Mumbai being India’s commercial and financial capital and home to the biggest industrialists, Maharashtra continues to attract the largest FDI despite other states competing aggressively with attractive incentives.”

Mr Jiwarajka, however, warned against any sense of complacency and said Maharashtra must continue to take steps to improve the ease of doing business and provide larger plots of land for bigger investments.

IMC President Mr Anant Singhania said ‘’Maharashtra’s various initiatives towards ease of doing business among single window clearance and policies to attract FDI and continue to create a good industrial climate has brought in a number of investments into the state."

"Cluster manufacturing concept for auto, textile, chemical has greatly helped in building the ecosystem which ensures good supply chain management in the background of the pandemic crisis. The state has brought about a conducive start up culture to meet aspirations of the young India,’’ he added.