Gujarat sees a massive increase in Foreign Direct Investment (FDI) inflows by 55% in 2023-24 as compared to 2022-23 figures

Gandhinagar: As per data released by the Department of Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, Government of India, Gujarat topped the list of states with the highest annual growth in FDI inflows during the fiscal year 2023-24, registering a growth of $2.6 billion.

Registering a 55% increase in Foreign Direct Investment (FDI) inflows in fiscal year 2023-24 as compared to the inflow in fiscal year 2022-23, Gujarat received a whopping USD 7.3 billion in fiscal year 2023-24 as compared to USD 4.7 billion received in fiscal year 2022-23. With a Foreign Direct Investment (FDI) inflow of USD 7.3 billion, Gujarat overtook Karnataka and Delhi to occupy the second position in the country.

In line with Prime Minister Shri Narendra Modi’s vision of Viksit Bharat, Chief Minister Shri Bhupendra Patel has introduced many industry-friendly policies and decisions, which have led to significant positive results in the state. Gujarat has shown steady growth in attracting FDI for three consecutive financial years, 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 consistent track record in attracting FDI inflows, Shri Balvantsinh Rajput, Minister of Industries and Mines, Government of Gujarat, said, “Under the leadership of Hon’ble Prime Minister Shri Narendra Modiji, our Chief Minister Shri Bhupendrabhai Patel is ensuring that every possible mechanism to facilitate investment and business is in place, from state-of-the-art industrial infrastructure to business-friendly government policies. With the dedicated efforts of the Chief Minister and the Chief Minister, Gujarat is also attracting significant investments in emerging industries like semiconductors and other promising sectors.”

Factors driving FDI inflow to Gujarat

Among the major factors that have played a role in attracting Foreign Direct Investment (FDI) are Gujarat’s state-of-the-art industrial infrastructure, industry-friendly policies and the steady improvement in the ease of doing business. Cluster-based industrial regions like GIFT City, Sanand GIDC, Dholera SIR (Special Investment Region) and Mandal Bechraji SIR also play a significant role in attracting investors. Flagship projects like multiple semiconductor manufacturing plants have also played a huge role in attracting foreign investment.

The introduction and effective implementation of new sectoral policies in areas such as renewable energy, semiconductors and IT over the last three years have also created a favourable investment climate. Financial incentives for entrepreneurs and small businesses setting up bases in Gujarat, expedited land allocation, grid connection and other business-friendly measures have also played a significant role in attracting new investments.

The biennial Vibrant Gujarat Summits, which Honorable Prime Minister Shri Narendra Modi initiated first during his tenure as CM of Gujarat, have also played a significant role in attracting new investments. Notably, the first Vibrant Summit during Azadi Ka Amrit Kaal held in January this year was also a grand success.

Foreign Direct Investment Inflow: Top Five States

With a total foreign direct investment (FDI) inflow of USD 15.1 billion in 2024, Maharashtra ranks first, followed by Gujarat with USD 7.3 billion. Karnataka, Delhi and Telangana in the same order rank third, fourth and fifth with respective foreign direct investment (FDI) inflows of USD 6.6 billion, USD 6.5 billion and USD 3 billion.

(This is a press release.)