THIRUVANANTHAPURAM: Foreign Direct Investment (FDI) inflow to Kerala more than doubled to touch Rs 3,300 crore in 2024-25, from Rs 1,633.42 crore logged a year ago. Kerala, which accounted for 0.79% of the total FDI received by the country, was ranked ninth.
In 2024-25, India received a total of Rs 4,21,929 crore as FDI, a 14.6% rise from the previous year. Maharashtra topped the list by bagging Rs 1,64,875.21 crore, 39.08% of the total equity inflow. It was followed by Karnataka, Rs 56,029.97 crore (13.28%), Delhi, Rs 51,540.12 crore (12.22%), Gujarat, Rs 47,947.23 crore (11.36%) and Tamil Nadu, Rs 31,102.71 crore (7.37%). Only seven states clocked a share greater than 1%.
Industries Minister P Rajeeve said it was a matter of pride for the state. “We could register a commendable growth though the amount is low when compared to top-ranking states. Kerala has the potential to draw more investments and we are devising programmes. The global capability centre and genome city are among the many initiatives on this front,” he told TNIE. The state will receive more FDI when the proposals at the Invest Kerala Global summit 2025 are realised, he added.
FDI inflow to Kerala showed a mixed trend in Kerala during the past five years. The state received Rs 1,581 crore in 2020-21, when investment flows plunged globally due to the Covid pandemic. The state accounted for 0.36% of the total inflow to the country that year. Investments soared to Rs 2,597 crore (0.59% share) in 2021-22 but slipped to Rs 1,330.69 crore (0.36% share) next year. The figures for FYs 2024 and 2025 were Rs 1,633.42 crore (0.44% share) and Rs 3,330.27 crore (0.79% share) respectively.
The IT sector drew a significant share of investments into the state. “There were big investments in the IT sector. Prominent companies Vensure, KAISEMI, Armada and dSPACE are to name a few. Talks with over two dozen global firms are in an advanced stage. This will reflect in the equity inflows in coming years,” said Sambasiva Rao, IT Secretary.
Kerala has tremendous potential in attracting FDI considering its strengths like availability of skilled human resources, said Prof C Veeramani, director of the Centre for Development Studies. “Considering Kerala’s share in national GDP and population, the state should be able to attract at least 2% of the total inflow,” he said.
