Noting that the downward trend in FDI is not only limited to Karnataka, Minister for Large and Medium Industries M.B. Patil on Monday pointed an accusing finger at the Centre by asking who has been responsible for a drop in total FDIs in India over three years.
In a press release from his department, the minister argued that the data published by the Union government indicates this declining trend of FDIs to India.
He described it as “faulty policies and a lack of vision of the Union Government”, adding that global developments could also be responsible for this.
FDI equity investment in FY 23-24 saw only a marginal fall of 3% compared with last year. However, compared to those of previous four years; it declined over 25%, Mr. Patil added.
The NDA government’s stand and “laxity” of erstwhile BJP government in State has contributed to reduction in FDI flow into State as per him. Investors are being diverted by the Union government towards Maharashtra and Gujarat, said the Minister.
Although FY 23-24 shows no significant decline but all State have been experiencing a negative impact caused by low FDI just like whole country does too. The State administration has taken proactive measures for improvement, according to Mr. Patil.
Karnataka attracted investments worth ₹1.13 lakh crore during 2023-24 across diverse sectors such as ESDM, Lithion Battery Manufacturing for EVs (Electric Vehicles), Core Manufacturing (Steel), Automobiles, Data Centres among others despite numerous challenges and adverse geopolitical conditions The manufacturing sector has exhibited encouraging momentum, he remarked.
