Gujarat records $7.3 bn FDI in FY 2023-24, 55% growth over last fiscal

Gujarat has successfully attracted Foreign Direct Investment (FDI) worth USD 7.3 billion in the financial year 2023-24, marking a significant 55% increase compared to the previous fiscal year, as per a recent release by the state government. This substantial growth in FDI has propelled Gujarat to the second spot in India, trailing only behind Maharashtra in terms of FDI inflow. The surge in investment highlights the state's growing appeal to foreign investors and its robust economic environment.
Meanwhile, according to report published by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Union Ministry of Commerce and Industry, the state government announced that Gujarat has topped the charts in the annual increase in FDI inflow for the fiscal year 2023-24. The state recorded a significant jump of USD 2.6 billion in FDI, showcasing its leading role in attracting foreign investments. With a total FDI inflow of USD 15.1 billion in 2024, Maharashtra occupies the top spot followed by Gujarat with USD 7.3 billion. Karnataka, Delhi and Telangana are on the third, fourth and fifth spots respectively with the FDI inflows of USD 6.6 billion, USD 6.5 billion and USD 3 billion. 
Gujarat has shown a consistent growth in attracting FDI for three consecutive financial years by securing investments of USD 2.7 billion in FY2022, USD 4.7 billion in FY2023 and USD 7.3 billion in FY2024. Speaking about Gujarat's performance in attracting the FDI inflow, state Industries Minister Balvantsinh Rajput said CM 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.
Factors fuelling FDI inflow in Gujarat 
The release highlights, 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.
Launch and effective implementation of new sector-specific policies in areas such as renewable energy, semiconductor, and information technology (IT) in the last three years have also created a favourable investment climate. Moreover, 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.

(State Correspondent)