Bengaluru: Alleging faulty policies and lack of vision of the union government for reduced FDI, Large and Medium Industries Minister M B Patil on Sunday claimed that the NDA government's stand and laxity of previous BJP led government in the state have also contributed for FDI decline to the state.
He further alleged that the union government is diverting the investors towards Maharashtra and Gujarat, which is also another reason for the dip in FDI in the state.
Patil told reporters that the decline in FDI is not just limited to Karnataka and said that the union government must take ownership of the decrease in overall FDI since three years.
Citing the data released by the central government, Patil added that though the global developments also might have contributed to the decline but the FDI to India has decreased from 71 Billion Dollar in FY23 to 70 Billion Dollar in FY24. "The FDI which stood at ₹ 4.42 lakh crore in FY 21-22 reduced to ₹ 3.67 lakh crore in FY 22-23, ₹ 3.427 lakh crore in FY 23-24," he stated.
He further added that the FDI equity investment in FY 23-24 has seen a dip of just 3% as compared to the previous year. "However, this fall is over 25 per cent as compared to the previous four years," the minister claimed.
The minister argued that there is a negative impact on the state also as it is true for the entire country. "But, there is no sharp decline in FY 23-24. The state government has taken constructive measures to better the scenario," Patil elaborated.
Despite many challenges and adverse geopolitical conditions, Karnataka has attracted investments worth ₹1.13 lakh crore in 2023-24 across various sectors of ESDM, Li-ion Battery Manufacturing for EVs (Electric Vehicles), Core Manufacturing (Steel), Automobiles, Data Centres, among many others. The manufacturing sector has shown promising momentum, he added.
Published 02 June 2024, 20:38 IST