The western region, led by Maharashtra and Gujarat, has seen an increase in sanction of foreign direct investment (FDI).

According to a study by the Confederation of Indian Industry (CII), FDI flow here has increased from Rs 744.07 crore in 1980-81 and Rs 7,732.70 crore in 1990-91 to Rs 3,7546.90 crore in 1997-98, indicating higher demand for funds for various industrial activities, according to the study.

In contrast, other regions have witnessed a sharp decline in FDI flow.

The east, which attracted 11.2 per cent of the total funds sanctioned by financial institutions in 1980-81 could corner only 7.9 per cent of the funds in 1997-98. Similarly, the northern region's share from domestic institutions has declined from 26.1 per cent 1980-81 to 12.9 per cent in 1997-98.

However, the slide in the inflow of funds to the south has been le