Outperforming states like Gujarat and Andhra Pradesh, Tamil Nadu is turning out to be an attractive destination for foreign direct investment (FDI). The state has attracted investments to the tune of Rs 6,711 crore in 2011-12, which is 66 per cent higher than Andhra Pradesh and 41 per cent higher than Gujarat.
According to a latest study by Frost & Sullivan and the Associated Chambers of Commerce and Industry of India (Asshocham), the FDI equity inflows in Tamil Nadu increased from Rs 3,653 crore in 2009-10 to Rs 6,711 crore in 2011-12. The FDI inflow to the state increased by around 10 per cent during the fiscal, compared to Rs 6,115 crore during 2010-11.
“While Maharashtra leads the country in attracting FDI, Tamil Nadu has turned out to be an important hub for FDI. It has attracted FDI at a faster rate than Andhra Pradesh and Gujarat,” said the report ‘Vision Tamil Nadu: Building Sustainable Tomorrow’.
“Tamil Nadu has set up industrial parks and special economic zones (SEZs) and offers tax incentives. FDI is allowed in the manufacturing industries based in the SEZs. With a good influx of talented human resources, Tamil Nadu has been able to attract incentives,” it added.
Gujarat has attracted an FDI investment of Rs 4,730 crore during 2011-12, while Andhra Pradesh attracted investment of Rs 4,039 crore during the fiscal.
However, Gujarat posted a growth of 43.6 per cent in FDI inflow during the fiscal, at Rs 4,730 crore, compared to Rs 3,294 crore during the previous year. Andhra Pradesh, which attracted Rs 5,753 crore investment during 2010-11, had a decrease of around 30 per cent in FDI inflow in 2011-12.
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Maharashtra, including Dadar and Nagar Haveli and Daman Diu, saw the highest FDI inflow at Rs 44,664 crore during the fiscal, as against Rs 27,669 crore during 2010-11. Karanataka has seen a foreign direct investment of Rs 7,235 crore during 2011-12, up from Rs 6,133 crore in the previous year.
The total FDI inflow into India was at Rs 1,73,946 crore during 2011-12, which is an increase of 96.5 per cent from Rs 88,520 crore in the previous fiscal year. The year 2010-11 saw a decrease in total FDI inflow, as compared to Rs 1,23,120 crore recorded during 2009-10, according to the study.