Skip to main content

Gujarat "leads" in FDI investment, India replaces China as top destination due to privatization, labour reforms

By Our Representative
Gujarat has “topped” the list of 10 most sought-after destination states for foreign direct investment (FDI) in 2015 in a comparison drawn between India and China by a new report by the Financial Times Group's thinktank FDI Intelligence. The report says, Gujarat "attracted $12.4bn and claimed 10% of all capital investment into both countries."
"In 2011, Gujarat was ranked the 14th most popular state for FDI within the two countries", the report says, adding, "Maharashtra in western India has been one of the strongest performers across the years and it has continued to close the gap on the top Chinese destination, Shanghai Municipality, with the locations attracting $8.3bn and $10.6bn, respectively, in 2015."
However, the report, titled "The FDI Report 2016: Global greenfield investment trends" does not say how much of the "committed" investment has actually fructified. In fact, a separate FDI Insight analysis does not mention Ahmedabad, Gujarat's business capital, or any other city of the state, among top ten FDI job creating cities in the Asia-Pacific region.
It says, with 15,000 jobs, Vietnam’s Ho Chi Minh City was "the regional leader in job creation over July 1 to December 31, 2015", adding, "Not far behind was the southern Indian city of Bangalore, which came second as a destination for FDI jobs, with 14,223 created over the same period."
"Singapore came third as a FDI destination for jobs, with 11,042. Noida, in the Indian state of Uttar Pradesh, came in fourth with 9,922 and Shanghai took fifth place with 8674", says the report.
The "sensational" revelation on Gujarat comes admidst "The FDI Report 2016" claiming that “India replaced China as leading recipient of capital investment in Asia-Pacific with announced FDI of $63bn". It adds, "China suffered a 16% drop in FDI projects." India, on the other hand, experienced an “8% increase in project numbers.”
Praising Prime Minister Narendra Modi for making India and Gujarat No 1 destination, the report says, the factors which led to this included pushing into the backdrop such factors like "lack of progressive FDI reforms, retrospective taxation, excessive permit requisites, centre-state political stalemates, inflexible labour markets, land acquisition issues and inadequate infrastructure hindered large-scale FDI into India prior to 2013."
Praising Modi his "campaign" for attracting FDI, the report underlines, it "garnered global attention as he has encouraged foreign investors to privatise key sectors such as the railways, defence manufacturing and insurance, as well as the liberalisation of medical devices." It adds, all this has helped in "ease of creating business."
The report says, "FDI flows into India increased from $24bn in 2013 to $59bn in 2015. The floodgates had been opened. India’s dramatic ascension in the global FDI rankings has largely been due to a dynamic Modi-led government focusing on ‘big bang’ FDI and labour law reforms." 
It adds, "Relative stability within the government coupled with an effort to reduce the stagnating effects of bureaucracy has given foreign investors, across many industries, confidence in India as a remunerative investment opportunity. India announced itself as a global force in the FDI sector as it broke into the top 10 economies in terms of incoming FDI flows in 2014."
It praises what it calls "Modi’s marquee visit to New York in late 2015 saw a plethora of US-based CEOs of Fortune 500 companies such as Google, Ford, Cisco, IBM, Lockheed, Marriott, Starwood, MasterCard, Merck, Pepsi, DuPont, Dow and EY hosting the prime minister and citing plans to expand in India. This event turned out to be a causative indicator for 2015 as India moved up to number six in the world for FDI flows in 2015."

Comments

TRENDING

'Draconian' Kerala health law follows WHO diktat: Govt readies to take harsh measures

By Dr Maya Valecha*  The Governor of Kerala has signed the Kerala Public Health Bill, which essentially reverses the people’s campaign in healthcare services in Kerala for decentralisation. The campaign had led to relinquishing of state powers in 1996, resulting in improvement of health parameters in Kerala. Instead, now, enforcement of law through the exercise of power, fines, etc., and the implementation of protocol during the pandemic, are considered of prime importance.

Reject WHO's 'draconian' amendments on pandemic: Citizens to Union Health Minister

By Our Representative  Several concerned Indian citizens have written to the Union Health Minister to reject amendments to the International Health Regulations (IHR) of the World Health Organization (WHO) adopted during the 75th World Health Assembly (WHA75) in May 2022, apprehending this will make the signatories surrender their autonomy to the “unelected, unaccountable and the whimsical WHO in case of any future ‘pandemics’.”

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Savarkar in Ahmedabad 'declared' two-nation theory in 1937, Jinnah followed 3 years later

By Our Representative One of the top freedom fighters whom BJP and Prime Minister Narendra Modi revere the most, Vinayak Damodar Savarkar, was also a great supporter of the two nation theory for India, one for Hindus another for Muslims, claims a new expose on the man who is also known to be the original proponent of the concept of Hindutva.

Bihar rural women entrepreneurs witness 50% surge in awareness about renewal energy

By Mignonne Dsouza*  An endline survey conducted under the Bolega Bihar initiative revealed a significant increase in awareness of renewable energy among women, rising from 25% to 76% in Nalanda and Gaya. Renu Kumari, a 34-year-old entrepreneur from Nalanda, Bihar, operates a village eatery that serves as the primary source of income for her family, including her husband and five children. However, a significant portion of her profits was being directed toward covering monthly electricity expenses that usually reach Rs 2,000. 

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Work with Rajasthan's camel herders: German scientist wins World Cookbook Award 2023

By Rosamma Thomas*  Gourmand World Cookbook Awards are the only awards for international food culture. This year, German scientist  Ilse Kohler Rollefson , founder of Camel Charisma, the first of India’s camel dairies, in Pali district of Rajasthan, won the award for her work with camel herders in Rajasthan, and for preparing for the UN International Year of Camelids, 2024. 

'Very low rung in quality ladder': Critique of ICMR study on 'sudden deaths' post-2021

By Bhaskaran Raman*  Since about mid-2021, a new phenomenon of extreme concern has been observed throughout the world, including India : unexplained sudden deaths of seemingly healthy and active people, especially youngsters. In the recently concluded Navratri garba celebrations, an unprecedented number of young persons succumbed to heart attack deaths. After a long delay, ICMR (Indian Council for Medical Research) has finally has published a case-control study on sudden deaths among Indians of age 18-45.

Why is electricity tariff going up in India? Who is the beneficiary? A random reflection

By Thomas Franco*  Union Ministry of Power has used its power under Section 11 of the Electricity Act, 2003 to force States to import coal which has led to an increase in the cost of electricity production and every consumer is paying a higher tariff. In India, almost everybody from farmers to MSMEs are consumers of electricity.

Union Health Ministry, FSSAI 'fail to respond' to NHRC directive on packaged food

By Our Representative  The National Human Rights Commission (NHRC) has expressed deep concern over the adverse health effects caused by packaged foods high in salt, sugar, and saturated fats. Recognizing it as a violation of the Right to Life and Right to Health of Indian citizens, the quasi-judicial body called for a response from the Food Safety and Standards Authority of India (FSSAI) regarding its selection of front-of-pack labels aimed at providing consumers with information to make healthier choices.