Karnataka, which saw the highest Foreign Direct Investment in the country during lockdown months, ended 2020 with Rs 61,174 crore, of which over Rs 37,000 crore came in the last six months.
According to data accessed from the ministry of commerce and industry’s Department for Promotion of Industry and Internal Trade, Karnataka saw a 25% dip in the second quarter (April-June) compared to the first (Jan-March) quarter, but investments jumped significantly thereafter.
Gujarat and Maharashtra got more FDI than Karnataka during the year, while Delhi and Tamil Nadu are in fourth and fifth place. These five states together received 88% of the Rs 4.78 lakh crore FDI. While Karnataka accounted for 13% of total FDI inflow in the country, Gujarat saw nearly 36% of total investments, while another 27% went to Maharashtra. Delhi and Tamil Nadu together garnered 12% together.
Despite the lockdown and other restrictions in the April-June period, we managed to attract Rs 10,254 crore, the most in the country, and from there, numbers increased even more in line with our assessments,” said a Karnataka industries department official. Karnataka attracted nearly 68% more FDI in the third (July-September) quarter compared to the second quarter, and the last quarter collections further went up. At Rs 19,955 crore, the state attracted 16% more FDI between October and December compared to the previous quarter. Comparatively, FDI inflow to the country dipped 48% in the second quarter, to jump significantly by 250% in the third quarter. It, however, fell by more than 9% in the last three months.
Karnataka industries minister Jagadish Shettar said: “The FDI we attracted is more than what we estimated internally given the pandemic. We anticipate it to grow further this quarter and in the coming months given the reforms we introduced, they’ll start getting implemented.”
Shettar added: “Whether it is creating a land bank or enabling ease of doing business and creating an investorfriendly ecosystem, we compete with ourselves. We want each quarter to look better than the earlier one.”