How Gujarat has emerged as the top FDI destination

Industry and investment-friendly policies made it No 1 even amid pandemic and the momentum will only continue

Nilesh Shukla | June 7, 2021


#Covid-19   #Pandemic   #FDI   #foreign direct investment   #investment   #industry   #economy   #Gujarat  
Chief minister Vijay Rupani
Chief minister Vijay Rupani

Due to the Covid-19 pandemic, since March 2020 the economy of not only India but the entire world has weakened tremendously and a major factor is unemployment. The challenge before the nation is how to push the economic growth in next financial year. As foreign direct investment can provide a major boost to the economy, the central government has taken several measures for FDI policy reforms. Investment facilitation and ease of doing business have resulted in increased FDI inflows into the country.

In this context, the Government of Gujarat, under the leadership of chief minister Vijay Rupani, has set an example for other states on how to handle both the pandemic and the economy simultaneously. According to official data released late last month, Gujarat has received the highest FDI during FY 2020-21 with 37% share of the total FDI equity inflows, followed by Maharashtra (27%) and Karnataka (13%). Majority of the equity inflow of Gujarat has been reported in the Computer Software & Hardware sector (94%). Despite the health crisis, the country’s inflows grew by 19 percent year-on-year to a record $59.64 billion. Gujarat recorded garnered Rs 1.77 lakh crore among them.

Gujarat attracts investments due to its industrial and investment friendly policy. It is one of the leading industrialised states in India and one of the fastest growing economies in the world. One of the most progressive states of the country, Gujarat and its transformational model today is one of the key contributors towards shaping a New India. The corridors of the government offices during the lockdown experienced the state’s re-strategizing of the industrial growth model.

Gujarat is not only among the pioneers of India’s growth story but also a leader in various sectors including petrochemicals, textiles, pharmaceuticals, automobiles, and gems and jewellery, and now the government is focusing on computer software and hardware.   

Although the 2021 edition of the biennial Vibrant Summit had been called off because of the pandemic, the intent is to keep the investment momentum going. The state government has written personal letters to the chairmen and CEOs of over 700 global companies based in over 50 countries, inviting them to invest in Gujarat. The companies which have been approached are those which are looking to expand their operations or shift their units out of China in the post-Covid era. These companies are from about 40 diverse sectors ranging from pharmaceuticals to finance technology (fintech).

The government of India is also partnering with the state government in its endeavour to attract fresh investment. Union ministries and departments like department for promotion of industry and internal trade (DPIIT), department of electronics & IT, and the ministries of textiles, pharmaceuticals and chemicals have assured full support to the latest endeavour by the state government.

Armed with a new industrial policy which offers several incentives to businesses, plug-and-play infrastructure for industries at the special investment regions (SIR) of Becharaji and Dahej and the GIFT city which is a hub for fintech companies, the Gujarat government aims to provide the best business environment to companies from a variety of sectors.

In India, Gujarat has been the most preferred business and investment destination for large multinationals for the past several years. The state government has set out a target to attract at least 10% of these companies who are looking to set up new facilities in the ASEAN region.

Shukla is Joint Director of Information, Government of Gujarat in New Delhi.
 

Comments

 

Other News

How a portal saved 2,000 lives by connecting patients with dialysis centres

As the city of Mumbai went into the lockdown in March 2020, those who were on permanent dialysis and caught Covid infection or suspected to have been infected were badly in need of dialysis treatment. At the same time a large number of patients who were already in dialysis centres started contracti

Tamil Nadu constitutes `Economic Advisory Council` with nobel laureates

The Tamil Nadu government has announced the `Economic Advisory Council` to the Chief Minister comprising Nobel laureates, Raghuram Rajan, former governor of Reserve Bank of India and various other economic experts from around the globe to advise the state on how to reverse the economic slowdown. The state

Kashmir valley railway stations get rail Wi-Fi network

 All 15 Kashmir Valley Railway Stations, including Srinagar, have now got integrated with 6021 Station Wi-Fi Network of Indian Railways. Public Wi-Fi, provided under the brand name of RailWire, is available at 15 stations such as Baramula, Hamre, Pattan, Maz

PM launches M-Yoga app on 7th International Yoga Day

The Prime Minister of India, Narendra Modi launched the ‘WHO M-Yoga’ App while addressing the occasion of the 7th International Day of Yoga. M-Yoga app will provide many videos of Yoga training and practice based on common Yoga protocol in many languages. Terming th

Cinema and OTT will coexist: Madhur Bhandarkar

With technology evolving every day, it provides filmmakers ideas to get more creative and an edge to tell more stories. India currently has about 40 OTT platforms and the number is increasing by the day. With cinema halls shut during the pandemic-induced lockdown, people turned to OTT platforms in a big wa

‘Pandemic added to loneliness, isolation among elderly’

HelpAge India Report 2021, ‘The Silent Tormentor: Covid 19 & the Elderly’, assesses the impact and challenges of the pandemic on lives of elderly living in households (informal settings) and old-age homes (informal settings). It unravels some deep-seated fears of the country’s elderly

Visionary Talk with Madhur Bhandarkar, National Award Film Maker



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter