Gujarat has witnessed a remarkable 55% increase in foreign direct investment (FDI) inflow during the financial year 2023-24, soaring to USD 7.3 billion from USD 4.7 billion in FY 2022-23. This growth marks a consistent upward trend over the past three years, with FDI inflows standing at USD 2.7 billion in FY 2021-22 and USD 4.7 billion in FY 2022-23.
The surge in FDI can be attributed to Gujarat’s robust industrial infrastructure, favourable business 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, has played a pivotal role in attracting significant investments to the state. In the latest summit held in January 2024, agreements for 41,299 projects worth Rs 26.33 lakh crores were inked, primarily focusing on green energy initiatives.
Cluster-based industrial zones such as GIFT City, Sanand GIDC, Dholera SIR (Special Investment Region), and Mandal Bechraji SIR have emerged as magnets for investors. Notably, Gujarat has also seen substantial interest in emerging sectors like semiconductor manufacturing, driven by major projects in the region.
The state government’s proactive approach with sector-specific policies in renewable energy, semiconductors, and IT has further bolstered Gujarat’s attractiveness to investors. Financial incentives, expedited land allotment, efficient power connections, and other business-friendly measures have also contributed significantly to the state’s success in attracting FDI.
Overall, Gujarat’s consistent growth trajectory in FDI inflows underscores its status as a leading investment destination in India, supported by strategic initiatives and robust infrastructure development.
