Gujarat topped the national charts in terms of annual increase in FDI (foreign direct investment) during the financial year (FY) 2023-24 by recording a jump of $2.6 bn, says the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), operating under the Union Ministry of Commerce and Industry.

Registering a 55% increase in the FDI inflow during FY 2023-24 as compared to the inflow during FY 2022-23, Gujarat received $7.3 bn in FY 2023-24 as compared to the $4.7 bn in the FY 2022-23.

Gujarat’s FDI surpassed that of Karnataka and Delhi to reach the second spot in the country, now only behind Maharashtra in terms of investment amount.

With several pro-business policies adopted by the state government, Gujarat has shown consistent growth in attracting FDI for three consecutive financial years.

Factors Fuelling FDI Inflow in Gujarat

Growing FDI in Gujarat is attributed to its industrial infrastructure and policies, along with several cluster-based industrial regions such as GIFT City, Sanand GIDC, Dholera SIR (special investment region), and Mandal Bechraji SIR.

The state also adopted sector-specific policies for several industries such as renewable energy, semiconductor, and IT in the last three years.

Financial incentives to entrepreneurs and small industries settling in the state, along with expedited allotment of land, power connection, and other business facilities have contributed to Gujarat’s healthy FDI numbers.

Toppers in FDI Inflow

With a total FDI inflow of $15.1 bn in 2024, Maharashtra sits in the top spot followed by Gujarat.

Karnataka, Delhi, and Telangana stand at the third, fourth and fifth spot with FDI inflows of $6.6 bn, $6.5 bn and $3 bn, respectively.