State's foreign direct investment inflow drops by 21%

By Xappie Desk, February 05, 2019 23:40 IST

State's foreign direct investment  inflow drops by 21%

The amount of foreign direct investment (FDI) received by Tamil Nadu has fallen by over 21% in the April-September 2018 period, when compared to last year, according to data from Department for Promotion of Industry and Internal Trade , Union Ministry of Commerce and Industry.
 
As per the data sourced from the Chennai Regional Office of the RBI, which covers Tamil Nadu and Puducherry, the State received an inflow of ₹10,892 crore in April-September 2018, down from ₹13,898 crore received in the comparable period in the previous year.
 
Tamil Nadu saw its FDI inflow rebound by over 50% to ₹22,354 crore in financial year 2017-18, compared to ₹14,830 crore in financial year 2016-17. In dollar terms, the inflow grew by 56% in 2017-18.
 
The State’s investment had halved in 2016/17 from the previous 12 month’s number of $4.53 billion. It was an election year and the investment climate saw some political uncertainty in the wake of the then Chief Minister Jayalalithaa’s hospitalisation and demise.
 
According to the data, in the April-September 2018 period, Gujarat and Andhra Pradesh saw a jump of 249% and 300% respectively in FDI inflow, compared to the corresponding period previous year. Maharashtra and Karnataka saw their inflows dip by over 40% each in the period. Figures on sector-wise investments for each State were not available. “Half-yearly or even annual data of FDI is not indicative of the competitiveness of the State. FDI data obtained over a longer period, at least for 5 years, need to be considered to get a fair picture of the foreign investment attractiveness of the State,” V. Arun Roy, Additional Secretary to Tamil Nadu Government, Industries Department, said.
 
He pointed out that Maharashtra had seen a 46% decrease, while Gujarat saw a three-fold jump from a small base in 2017. “We know that nothing drastically wrong happened in Maharashtra nor good happened in Gujarat in one year. FDI, by its very nature, is very sporadic in its flow, being project specific,” Mr. Roy said.
 
M. Velmurugan, executive vice-chairman of Investment Promotion, Industrial Guidance and Export Promotion Bureau, said in the recently concluded global investors meet 2019, 35 foreign companies signed memoranda of understanding for foreign direct investments worth ₹ 26897 crore (US$3842 million).
 
amount of foreign direct investment (FDI) received by Tamil Nadu has fallen by over 21% in the April-September 2018 period, when compared to last year, according to data from Department for Promotion of Industry and Internal Trade , Union Ministry of Commerce and Industry.
 
As per the data sourced from the Chennai Regional Office of the RBI, which covers Tamil Nadu and Puducherry, the State received an inflow of ₹10,892 crore in April-September 2018, down from ₹13,898 crore received in the comparable period the previous year last year.
 
Tamil Nadu saw its FDI inflow rebound by over 50% to ₹22,354 crore in financial year 2017-18, compared to ₹14,830 crore in financial year 2016-17. In dollar terms, the inflow grew by 56% in 2017-18 from last year.
 
The State’s investment had halved in 2016/17 from the previous 12 month’s number of $4.53 billion. It was an election year and the investment climate saw some political uncertainty in the wake of the then Chief Minister Jayalalithaa’s hospitalisation and demise.
 
According to the data, in the April-September 2018 period, Gujarat and Andhra Pradesh saw a jump of 249% and 300% respectively in FDI inflow, compared to the corresponding period last year. Maharashtra and Karnataka saw their inflows dip by over 40% each in the period.
 
Figures on sector-wise investments for each State were not available.
 
“Half-yearly or even annual data of FDI is not indicative of the competitiveness of the State. FDI data obtained over a longer period, at least for 5 years, need to be considered to get a fair picture of the foreign investment attractiveness of the State,” V. Arun Roy, Additional Secretary to Tamil Nadu Government, Industries Department, said.
 
He pointed out that Maharashtra had seen a 46% decrease, while Gujarat saw a three-fold jump in 2018 from a small base in 2017.
 
“We know that nothing drastically wrong happened in Maharashtra and good happened in Gujarat in one year. FDI, by its very nature, is very sporadic in its flow, being project specific,” Mr. Roy said.
 
M. Velmurugan, executive vice-chairman of Investment Promotion, Industrial Guidance and Export Promotion Bureau, said in the recently concluded global investors meet 2019, 35 foreign companies signed memoranda of understanding for foreign direct investments worth ₹ Rs.26897 crore (US$3842 million).
 
“These are 100% subsidiaries. Once all these get accounted, there will be a big jump. Besides, a number of other MoU projects have foreign joint ventures,” he added. Mr. Velmurugan said one has to look at the overall horizon and a few months data really do not reflect the impact. “If you look at the last seven years, FDI in Tamil Nadu has gone up. Between May 2011 to September 2018 the FDI inflow into the State was $21.48 billion, which is quite high,” he added.


Tags :


Top