Gujarat tops FDI growth with 55% jump in FY 2024

Ahmedabad: Gujarat has witnessed a remarkable 55% surge in foreign direct investment (FDI) during FY 2024, marking a significant increase from the previous fiscal year. According to data released by the department for promotion of industry and internal trade (DPIIT), Gujarat led the nation in the annual growth of FDI, registering an impressive rise of $2.6 billion.The state’s FDI inflows totalled $7.3 billion in FY 2024, up from $4.7 billion in FY 2023, propelling Gujarat to overtake Karnataka and Delhi to take second position in the country’s FDI rankings.
Maharashtra is in the first spot. State govt officials attribute this substantial growth to the proactive policies implemented by the govt. “Gujarat’s industry-friendly policies, robust industrial infrastructure and continuous improvements in the ease of doing business have been pivotal in attracting increased FDI,” said govt sources. Key industrial zones like GIFT City, Sanand GIDC, and special investment regions in Dholera and Mandal-Bechraji have played a crucial role in enticing foreign investors.

The establishment of major projects such as multiple semiconductor manufacturing plants has also been instrumental in boosting foreign investment in Gujarat. The state has demonstrated consistent growth in FDI attraction over the past three fiscal years, beginning with $2.7 billion in FY 2022 and progressively increasing thereafter.
“The introduction and effective implementation of sector-specific policies, particularly in renewable energy, semiconductor manufacturing, and IT sectors, have significantly bolstered the investment climate,” said govt officials. “Financial incentives for entrepreneurs and small industries, streamlined processes for land allocation, power connections, and other business-friendly measures have further contributed to Gujarat’s attractiveness as an investment destination,” added a statement from the state govt.
Govt sources also attributed the growth to the Vibrant Gujarat Global Summit (VGGS) 2024, in drawing investments to the state.