NEW DELHI: MUMBAI, which has been for long the top destination that attracts Foreign Direct Investment (FDI) inflows in India, retained its position with the highest share in total FDI equity inflows to the country in 2018-19 too; but the financial capital might be losing its sheen. In fact, the New Delhi region, which covers the national capital and parts of Uttar Pradesh and Haryana, is fast closing in.
Data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed that Mumbai — covering Maharashtra, Dadra & Nagar Haveli and Daman & Diu — saw 39.3 per cent fall in FDI inflows, garnering just Rs 80,013 crore, or $11.38 billion, in 2018-19, from a high of Rs 1.32 lakh crore ($19.65 billion) in 2016-17 and Rs 86,244 crore ($13.42 billion) in 2017-18.
Similarly, FDI received by Gujarat and Kochi (covering Kerala and Lakshadweep) has declined sequentially.
While Kochi slipped from $454 million in 2016-17 to $257 million in 2018-19, Gujarat fell from $3.4 billion to $1.8 billion during the period under review. Kochi, however, has seen more inflows this year, compared to a year ago when it received $208 million worth investments.
FDI inflows in southern states like Karnataka and Tamil Nadu and Union Territory Pondicherry also slumped on year but were still higher than the lows of 2016-17.
However, inflows from Delhi has been on a northward journey, rising consistently from Rs 39,482 crore ($5.9 billion) in 2016-17 to Rs 49,366 crore ($7.7 billion) in 2017-18 and then doubling at Rs 70,485 crore ($10.1 billion) in 2018-19.
Some states, which have been laggards in the past, also emerged as dark horses. For instance, West Bengal, Sikkim and Andaman & Nicobar garnered a combined $1.2 billion in 2018-19, against $218 million a year ago, a near six-time jump. FDI in Punjab, Chandigarh, Haryana and Himachal Pradesh together rose exponentially from a mere $6 million in 2016-17 to $108 million in 2017-18 and $618 in 2018-19.
Overseas funds
Rs 80,013 crore worth FDI garnered by Mumbai in 2018-19, seeing a 39.3% decline.
Rs 49,366 crore worth overseas investment in Delhi the same year.