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With $10 b in 4 years, TN ranks fourth in attracting FDI

Cumulative Foreign Direct Investment (FDI) inflow in to Tamil Nadu has touched nearly $10 billion in the last four years from the period between October 2019 and September 2023.

Up to September of the current fiscal, the State attracted FDI worth $1.3 billion.

For the fiscal 2022-23, the State attracted FDI worth $2.17 billion, which was lower than $3 billion that came in the previous year, according to information provided by Som Prakash, Union Minister of State – Commerce and Industry in the Lok Sabha. He was responding to a question on seeking details of FDI that has come to Tamil Nadu since May, 2019.

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The total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings and other capital. The State-wise details are maintained for the equity component of total FDI inflow since October, 2019.

Tamil Nadu ranks fourth in attracting FDI in the period between Oct 2019 and September 2023, after Maharashtra, Karnataka and Gujarat–but a distant fourth, as seen in the table below. The tiny states of Haryana and Telangana are close behind Tamil Nadu.

With the Tamil Nadu Global Investors Meeting scheduled to take place on January 7 and 8, 2024 in Chennai, the State government hopes to attract more investment to the State.

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To a query on steps being taken to attract FDI for the State, the minister said the Centre has put in place an investor friendly FDI policy, wherein most of the sectors, except certain strategically important sectors, are open for 100 per cent FDI under the automatic route.

The Government has implemented several FDI reforms across sectors, including Defence, Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development and Civil Aviation. The Government also reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains. attractive & investor friendly destination, the minister said.

(Amount in $ billion)

State FDI inflow in $ b (Oct 2019 to Sept 2023)
Maharashtra 61.92
Karnataka 47.30
Gujarat 34.16
Tamil Nadu 9.85
Haryana 8.79
Telangana 5.92

Source: Lok Sabha


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