State-Wise FDI Champions: Maharashtra and Gujarat Lead India's Investment Revolution

India's FDI landscape is witnessing a remarkable transformation at the state level, with Maharashtra and Gujarat emerging as the undisputed champions of foreign investment attraction. These states are not just leading in numbers but are setting benchmarks for investment-friendly policies and infrastructure development.

Maharashtra: The Investment Powerhouse

Maharashtra continues to dominate India's FDI inflows, capturing an impressive 31-39% of total investments, amounting to approximately USD 16.65 billion till December 2024. The state's strategic location, robust infrastructure, and business-friendly policies have made it the preferred destination for multinational corporations.

Gujarat: The Growth Champion

Gujarat has demonstrated exceptional growth momentum, receiving USD 7.3 billion in FY 2023-24 with a remarkable 55% year-on-year growth. The state's focus on manufacturing, chemicals, and emerging sectors like semiconductors has positioned it as a key player in India's industrial transformation.

Emerging Stars: Tamil Nadu and Telangana

Tamil Nadu attracted USD 2.4 billion with 12% year-on-year growth, while Telangana doubled its FDI to USD 3 billion, achieving an impressive 132% year-on-year growth. These states are rapidly emerging as new investment hubs, particularly in technology and manufacturing sectors.

Challenges and Opportunities

While Karnataka (13% share, 37% decline) and Delhi (12% share, 13.4% decline) faced challenges in FY 2023-24, they present significant opportunities for policy reforms and strategic repositioning to regain their competitive edge in attracting foreign investments.