According to official data, Gujarat attracted FDI worth $3.36 billion or approximately Rs 22,610 crore in financial year 2016-17
Gujarat, for long one of the biggest industry hubs in the country, but also nowhere on the radar of foreign investors, seems to be finally making its presence felt. The state has emerged as one of the top destinations for Foreign Direct Investment (FDI) in the last two years, overtaking established FDI hubs such as Karnataka and Tamil Nadu.
According to official data, Gujarat attracted FDI worth $3.36 billion or approximately Rs 22,610 crore in financial year 2016-17. This was 50 per cent higher than 2015-16 ($2.24 billion) and almost four times higher than 2013-14 when FDI inflows in the state stood at $860 million.
"FDI in Gujarat has gone up by four times since 2013-14. This shows that Gujarat is top-of-mind as an important investment destination among foreign companies investing in India," Manoj Das, principal secretary, industries department, told DNA.
Unsurprisingly, automobile is the sector which has received the largest share of FDI, which is due to the state's efforts to project itself as an auto manufacturing hub.
Suzuki has invested over Rs 3,000 crore in its car plant at Mehsana, while Honda Motorcycle and Scooter India invested Rs 1,100 crore for its scooter-only plant at Vithlapur.
Taiwan's Maxxis has invested Rs 2,600 crore for a tyre manufacturing plant.
"FDI has also taken place in infrastructure, manufacturing and services, but automobile has attracted the highest share," said Das.
According to officials, Japan has been the largest contributor to FDI in Gujarat in the past couple of years. Japanese investment in Gujarat is pegged at $1 billion so far, and it is expected to triple to $3 billion by 2020.
Otsuka Pharma, Kansai Nerolac and Toyoda Gosei Minda are some of the other major investors in Gujarat.
Experts attribute the strong growth in FDI in the state to the state's increased visibility on the international stage.
"The biennial Vibrant Gujarat summits are helping Gujarat catch attention of foreign investors. Being Prime Minister Narendra Modi's home state is also a huge plus. When the PM travels the world and pitches his model of governance, Gujarat automatically comes to the forefront. The FDI numbers are showing this," management consultant Nayan Parikh told DNA.
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Unsurprisingly, automobile is the sector which has received the largest share of FDI, which is due to the state's efforts to project itself as an auto manufacturing hub.
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