Maharashtra tops FDI list; Delhi a surprise

New Delhi, Oct 11 (UNI) In the race among states for attracting Foreign Direct Investment (FDI), Maharashtra tops the list having procured an amount of Rs 12,065.44 crore as approvals during the period April 2001 to March 2006.

Out of a total FDI approval of Rs 45,911 crore accuring to states and Union Territories, Maharashtra cornered the highest amount during the period.

The next highest FDI during the period went to Karanataka with an amount of Rs 5,525.72 crore. Karnataka is well known for the impressive strides it has made in the Information Technology Sector.

Many MNCs are setting up shop in Karanataka, taking advantage of the skilled manpower available there. Besides, there is considerable outsourcing activity from the state to the West.

The little known case is that of Delhi taking a lead now with a total FDI of Rs 4,700 crores from April 2001 to March 2006.

This is followed by Gujarat, an industrially developed State, with this form of foreign investment being Rs 4,469 crore.

Fifth in the row is the familiar case of Tamil Nadu with an FDI inflow of Rs 2995.08 crore. Tamil Nadu is fast emerging as an industrial State.

The figures reflect the common belief that South is catching up fast in terms of industrialisation.

A new phenomenon of liberalisation and globalisaton in India has been states vying with each other for private investment, including foreign investment. Chief Ministers or the top bureaucracy of the states is seen in important international events highlighting what their governments have to offer, an example in this regard is the annual mega event--'Pravasi Bhartiya Diwas'.

Often the moves for getting large private investment has assumed aggressive postures. For instance the tax sops offered by Himachal Pradesh has led to a rapid flight of industry from neighbouring Punjab. The border state has taken the issue to the Central ledership and institutions, including the Planning Commission.

Sources say the Eleventh Plan document, now under preperation, has disfavoured industrial incentives of this kind.

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