Gujarat is indeed a vibrant and much-happening state. It is also the home state of Prime Minister Narendra Modi, who conceptualised and began the Vibrant Gujarat Summit in 2003. But according to the latest figures, in the first quarter of FY 2025, Gujarat ranks fifth when it comes to Foreign Direct Investment (FDI) inflows amounting to Rs 8,508 crore as per the latest report from the Department for Promotion of Industry and Internal Trade (DPIIT).
However, this marked a 42% increase compared to the Rs 5,993 crore received in the same period of FY 2024.
States such as Maharashtra (Rs 70,796 crore), Karnataka (Rs 19,059 crore), Delhi (Rs 10,788 crore), and Telangana (Rs 9,023 crore) have outpaced Gujarat in attracting foreign investments.
Cumulatively, since October 2019, Gujarat has amassed FDI inflows totalling Rs 3.08 lakh crore, making it the third highest in India, following Maharashtra (Rs 6.03 lakh crore) and Karnataka (Rs 4.08 lakh crore).
From June 30, 2023, to June 30, 2024, Gujarat’s FDI inflows grew by 25%. Over a two-year span, the state’s cumulative FDI inflows have increased by 35%.
Industry experts attribute Gujarat’s success in attracting investments to several factors, including proactive policy measures, robust social infrastructure, a cluster-based approach, and excellent connectivity to ports.
Pathik Patwari, Chairman of the ICC Gujarat Council, said to a section of media, “The automobile industry in Gujarat has thrived following a major investment by Tata Motors, which has led to the establishment of numerous ancillary units and attracted new players. The cluster-based approach has been particularly effective in drawing foreign investments in sectors such as semiconductors, logistics, and green energy.”
He further added, “Moreover, ready plug-and-play infrastructure in various industrial clusters, better connectivity to ports and a good social infrastructure with easy availability of labour and peace are among the factors that drove industrial investments here. That apart, Gujarat is a policy-driven state, wherein govt has a clear vision to provide incentives to new investments.”
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