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

Some market talk, some gossip – learnings over tea at RBI

A Fly on the RBI Wall: An Insider’s View of the Central Bank By Alpana Killawala Rupa Publications, 248 pages, Rs 595  

Coalition politics not expected to impact India’s foreign policy

Prime minister Narendra Modi has strived incessantly to bring laurels and much needed recognition for the nation since May 2014 when he was sworn in as the head of state. The poser which can be deliberated upon is this: What will be the consequential impact of the new era of coalition politics which confro

New govt`s first decision pushes for farmer welfare

The BJP-led NDA government has started its term with its first decision relating to farmer welfare. Narendra Modi took charge of office as prime minister of India for the third time on Monday, a day after he and his colleagues were sworn in by the president of India. In his fi

Narendra Modi takes oath for third term

Narendra Modi made history Sunday evening as he was sworn in by president Droupadi Murmu for a third successive term. Modi thus becomes the first prime minister since Jawaharlal Nehru to have comptered two full terms and beginning a third consecutive term. In the swearing-in c

Modi appointed PM for the third time

Narendra Modi was Friday appointed the prime minister for a historic third time, as president Droupadi Murmu invited him to form the next government. The swearing-in ceremony for the new council of ministers will take place on Sunday. “The President, having satisfied herself on the bas

Elections 2024: ‘Nearly half the winners have declared criminal cases’

As many as 251 of the 543 winning candidates of the just-concluded general elections, that is, 46 percent of them, have declared criminal cases against themselves, according to an analysis carried out by the Association for Democratic Reforms (ADR). This number has been consistently rising – from 162

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter