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Gujarat Sees 55% Increase in FDI Inflow in FY 2023-24

Gujarat has recorded a significant 55 percent increase in foreign direct investment (FDI) during the financial year 2023-24, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT)

FDI Growth Over the Years

The DPIIT data revealed that Gujarat received USD 7.3 billion in FDI for FY 2023-24, compared to USD 4.7 billion in FY 2022-23. This marks a consistent upward trend in FDI inflows for the state over the past three years, with investments of USD 2.7 billion in FY 2022, USD 4.7 billion in FY 2023, and USD 7.3 billion in FY 2024.

“Gujarat has demonstrated consistent growth in attracting FDI over three consecutive financial years,” stated the Chief Minister’s Office (CMO) Gujarat in a post on X.

Factors Contributing to FDI Growth

Several factors have contributed to Gujarat’s success in attracting FDI, including advanced industrial infrastructure, industry-friendly policies, and continuous improvements in the ease of doing business.

The biennial Vibrant Gujarat Summit, initiated by Prime Minister Narendra Modi during his tenure as Chief Minister of Gujarat, has been instrumental in attracting new investments to the state. The first Vibrant Summit during the Azadi Ka Amrit Kaal was held in January this year.

“Aligned with the #ViksitBharat vision of Hon’ble PM Shri @narendramodi, Gujarat CM Shri @Bhupendrapbjp has ensured that every possible mechanism facilitating investment and business is in place, from state-of-the-art industrial infrastructure to business-friendly government policies,” the CMO added. The post also highlighted the significant role of the Vibrant Gujarat Summits in bringing new investments, particularly in emerging industries like semiconductors and other promising sectors.

MoUs and Industrial Regions

During the 10th edition of the Vibrant Summit held in January, Memoranda of Understanding (MoUs) for 41,299 projects worth Rs 26.33 lakh crores were signed, with a large portion of these in the green energy sector. In 2022, MoUs for 57,241 projects worth Rs 18.87 lakh crores were signed, although the Vibrant Gujarat Summit 2022 was postponed due to the COVID-19 pandemic.

Cluster-based industrial regions such as GIFT City, Sanand GIDC, Dholera Special Investment Region (SIR), and Mandal Bechraji SIR have also been significant in attracting investors. High-profile projects, including multiple semiconductor manufacturing plants, have played a substantial role in drawing foreign investment.

Sector-Specific Policies

In the past three years, Gujarat has launched and effectively implemented new sector-specific policies in areas such as renewable energy, semiconductors, and IT, creating a favorable investment climate.

Financial incentives for entrepreneurs and small industries, expedited allotment of land, power connections, and other business-friendly measures have further contributed to attracting new investments.

With inputs from ANI.

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