Maharashtra has acquired the highest Foreign Direct Investment (FDI) in India as of this financial year, with almost half of country’s share, reveals Industries Minister, Subhash Desai.
The western Indian state of Maharashtra has been the recipient of the largest amount of FDI in India, with an approximate EUR 9.65 billion invested in the first six months of the current financial year, as shared by Industries Minister, Subhash Desai. Desai reported that this is nearly 47 pc of the total investment throughout the country, where Delhi and Tamil Nadu stand at second and third places respectively.
“The state has become the favourite destination for foreign investment due to its policies of providing ease of doing business, quality infrastructure, encouragement and skilled manpower,” the minister claimed. “We have achieved 84.5 pc in terms of ease of doing business, up from previous year’s 49.5 pc, and this is expected to rise to 90 pc in the near future,” Desai said. The state reportedly received investments mainly from Japan, England, Mauritius, USA and The Netherlands. The service sector, real estate and infrastructure, computer hardware and software, telecommunications, motor vehicles and medicines were the areas where most of the FDI has been directed to. Desai added, “These are figures only of equity. If seen along with reinvestment of profit and other capital investments, this figure becomes all the more impressive.”
Vidarbha and Marathwada, two backward regions of the state, are said to have gained majorly, with a push in industrial investment. Vidarbha has a textile park in Nandgaon Peth in Amravati that has drawn up to 11 large units such as Raymond, Siyaram, Shyam Indo Fab and Suryalakshmi, claimed the minister. Addressing a question on high power charges in the state, Desai stated, “Maharashtra is trying to reduce the burden of high agriculture subsidy, which makes industrial power tariff high by separating them from farm feeders and laying stress on solar power use in farming.”
FDI growth in sight
Commerce and Industry Minister, Nirmala Sitharaman remained optimistic about the growth in FDI in the near future. She had shared with PTI, “I am sure the momentum on FDI will continue. I think many of the areas where the ball is set rolling, you might see tangible results coming out in 2017.” She added that things have been in motion in key areas, including defence and medical devices. Hoping to improve the conducive business climate in the country and attract investments, the government this year altered FDI caps in several sectors. In the defence sector, for example, the policy has been altered and now stands at the scope of a 100 pc FDI.
Even as initiatives such as Make in India put in place, India did not see a change in its ranking in the Ease of Doing Business report by World Bank, by remaining at 130 this year out of 190 countries. As Indian Prime Minister, Narendra Modi aims to see the country feature among the top 50 destinations for doing business, the Department of Industrial Policy and Promotion (DIPP) has also announced steps to improve ease of doing business.