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Trends of FDI Inflow in the Different Industries of Gujarat

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Abstract: Foreign Direct Investment is considered to be an important factor to promote growth in any economy. Gujarat has experienced tremendous inflow of FDI in the past two and half decades. Gujarat is among the top five states in India to attract FDI. This may have been possible due to its strategic location, the network of roads, approachable rail route and a very long coast line etc. However, the inflow of FDI has been concentrated in few industries. The large industries take a major share of the FDI. In view of this, the present paper has attempted to study the overview of the location of FDI in different industries of the State, the contribution of FDI in Gujarat towards industries. It has been found that Gujarat has been successful in attracting a lot of foreign investment in the industrial sector unlike the national trend. It is India’s one of the most Industrial State with a variety of industries. Having found this, studies clearly show that there is a growing trend in the flow of FDI in large industries at the same time there is a need to focus on the inflow of foreign investment in the medium, small and micro industries for a balanced industrial growth.

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