Maharashtra leads in attracting Foreign Direct Investment (FDI)

Maharashtra’s FDI inflows are strengthened by the presence of major business headquarters, giving the state a 31% share of national FDI equity inflows. In the June 2023 quarter, it successfully attracted U$$ 8.5 billion in Foreign, followed by Karnataka and Gujarat.

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Maharashtra remains a top destination for Foreign Direct Investment (FDI), attracting US$ 8.5 billion in the June 2023 quarter, significantly ahead of Karnataka (US$ 2.3 billion) and Gujarat (US$ 1.02 billion), according to the data released by the Ministry of Commerce and Industry. However, FDI growth in Maharashtra has slowed to just 2% in FY 2023-24, while states like Gujarat and Jharkhand posted over 50% growth in FDI inflows during the same period.

Maharashtra’s large share of FDI, which accounts for 31% of the total inflows, is attributed to the presence of headquarters of major business houses in the state. Even though many of these businesses have operations elsewhere, FDI is recorded where the headquarters are located, contributing to the state’s high FDI figures.

Despite its FDI success, Maharashtra is losing out on local project investments. According to a Reserve Bank of India study, banks and financial institutions financed Rs 3.9 lakh crore in projects across India in 2023-24. Gujarat accounted for 14.7% of this funding, while Maharashtra secured 11.7%