Odisha ranks next only to Kerala & Lakshwadeep in terms of registering growth in inbound FDIs where the FDI growth stood at 406 per cent year-on-year, said a study by CARE Ratings, quoting figures from the Department for Promotion of Industry & Internal Trade (DPIIT).
In terms of growth, the FDI equity inflows increased in Kerala, Odisha and North Eastern states while Andhra Pradesh, West Bengal, Chandigarh (including Punjab, Haryana and Himachal Pradesh), Rajasthan, Madhya Pradesh, Goa and Uttar Pradesh declined in H1 FY20 when compared with the corresponding period last year.
In H1 FY20, Maharashtra, Delhi, Karnataka and Gujarat accounted for more than 70 per cent of the total FDI equity inflows. Delhi had the highest share of 27 per cent in the total FDI equity inflows amounting to $7.2 billion in H1 FY20 and these inflows were 27 per cent higher than the $5.6 billion equity inflows in H1 FY19.
In the first half of FY20, Karnataka surpassed Maharashtra in terms of FDI equity inflows. Maharashtra’s share in the total FDI equity inflows declined from 23 per cent in H1 FY19 to 14 per cent in H1 FY20 and the total equity inflows declined by 32 per cent on the y-o-y basis to $3.6 billion in H1 FY20.
On the other hand, Karnataka’s share increased from 11 per cent in H1 FY19 to 18 per cent in H1 FY20, having grown by substantial 82 per cent in H1 FY20.
The FDI equity inflows in Gujarat more than doubled from $1.5 billion in H1 FY19 to $3.5 billion in H1 FY20 – a growth by 123 per cent. Tamil Nadu registered a decline in FDI equity inflows by 15 per cent (y-o-y) in H1 FY20 to $1.4 billion.
“The remaining 12 states (Andhra Pradesh, West Bengal, Chandigarh (incl. Punjab, Haryana and Himachal Pradesh), Kerala, Rajasthan, Madhya Pradesh, Goa, Uttar Pradesh, Orissa, North Eastern States, Bihar and Jammu and Kashmir collectively accounted for six per cent of the total FDI equity inflows in H1 FY20, lower than the 15 per cent collective share in H1 FY19”, the report added.
The top 10 countries- Mauritius, Singapore, Japan, Netherlands, USA, UK, Germany, Cyprus, France and the UK accounted for 86 per cent of the total FDI equity inflows in H1 of FY20.
“Despite adversity on the global front, the first 6 months of the fiscal year FY20 witnessed increase in FDI inflows in the country, which is a positive. It suggests foreign investors’ confidence on the Indian economy. Going forward, there are expectations of further inflows in the FDI investment as India continues to remain one of the favoured destinations for the investment by the foreigners. In the second half of FY20, we are anticipating FDI equity inflows to the tune of around $25 billion”, the report noted.