Karnataka stands 3rd for FDI inflows in India after Maharashtra ,Gujarat
Inadequate infrastructure notwithstanding, Karnataka continues to be a favourite destinations for foreign direct investment (FDI) in the country.
The State, which attracted US$2,026.4 million worth of FDI in 2008-09, emerged as third largest state with 7.42 per cent share in India’s total FDI of US$27,309 million.
Incidentally, the country, as a whole, recorded 11 per cent growth during fiscal 2009 as against US$24,580 million in fiscal year 2008. In fact, the State, which stood at fourth position last year, has gone notch up this fiscal, indicative of investor’s implicit faith in Karnataka and brand Bangalore.
This thanks primarily to the FDI which kept flowing into the Indian IT sector registering a rise of 19 per cent. Inflows in computer software and hardware sector during fiscal 2009 stood at US$1,667 million as against US$1,1410 million in 2007-08.
Among states Maharashtra took top position at US$12,409.20 million with 45.44 per cent share and Gujarat second spot at $2,825.80 million with 10.35 per cent share. Rightfully, the flow of foreign investment shows inclination towards states with investor friendly business environment. As a result, it notes, that six top states (Maharashtra, Gujarat, Karnataka, New Delhi, Tamil Nadu and Andhra Pradesh), together attracted about 81 per cent of total FDI during fiscal year 2009. Further, despite global recession and financial crises in world’s largest economies, India continued to be held as most safe destination for investment.
Meanwhile, country’s FDI saw 60 per cent surge in November to US$1.74 billion in November as against US$1.08 billion in same month last year. The country upto October 2009 has received US$23,821 million, according to Department of Industrial Planning and Policy as against US$30,588 million in previous fiscal of 2008. In October 2009 alone it clocked inflow of US$2,332 million as against same month period previous fiscal’s US$1,497 million. Cumulatively, FDI inflows during 2009-10 for eight-month period, however, declined marginally to US$19.38 billion from US$19.79 billion a year ago due to the impact of global credit squeeze felt in earlier months of fiscal.