Observing that the decline in FDI is not just confined to Karnataka, Large and Medium Industries Minister M.B. Patil on Monday blamed the Centre for the trend by wondering who is responsible for the decrease in the overall FDI in India in the last three years.
In a communique from his department, the Minister pointed out that the data released by the Union government reflects the declining trend in FDI in India.
Blaming “faulty policies and a lack of vision of the Union government” for the reduction in FDI, he observed that global developments also might have contributed to this.
The FDI in India decreased from $71 billion in FY23 to $70 billion 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 and ₹3.427 lakh crore in FY 23-24, he said.
The FDI equity investment in FY 23-24 has seen a reduction of just 3% as compared to the previous year. However, this fall is over 25% as compared to the level of the previous four years, Mr. Patil said.
He alleged that the NDA government’s stand and the “laxity” of the erstwhile BJP government in the State had also contributed to the decline in FDI in the State. The Union government is diverting the investors towards Maharashtra and Gujarat, the Minister alleged.
There is a negative impact on the State due to decline in FDI 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, Mr. Patil said.
Despite many challenges and adverse geopolitical conditions, Karnataka has attracted investments worth ₹1.13 lakh crore in 2023-24 across various sectors of ESDM, Lithion Battery Manufacturing for EVs (Electric Vehicles), Core Manufacturing (Steel), Automobiles, Data Centres, among many others. The manufacturing sector has shown promising momentum, he maintained.
