Maharashtra is likely to be one of the key beneficiaries of the liberalised rules for foreign direct investments (FDI) announced earlier this week, especially as it is home to many financial sector firms and diversified conglomerates.
The Centre made rules easier for FDI in single brand retail, construction and power exchanges. It also eased rules for sectors like medical devices, audit firms and real estate broking to receive more capital inflows.
The state has been the largest recipient of FDI inflows since India opened up to the world. From April 2000 to March 2017, Maharashtra (along with Dadra & Nagar Haveli and Daman & Diu) has received a total of $102 billion in cumulative FDI inflows, according to data available in the website of the Department of Industrial Promotion and Policy (DIPP). That is 31 per cent of all the $332 billion FDI inflows into India in this period.
That track record has continued into this financial year also. Maharashtra has received $9.9 billion in FDI in the first six months of the financial year 2017-18, according to data shared in the Lok Sabha by CR Chaudhary, the minister of state for commerce and industry.
Maharashtra’s share is 39.4 per cent of the total FDI of $25.35 billion that flowed into India between April and September 2017. The FDI flows for the six months of 2017 are roughly 50 per cent of inflows received in the whole of 2016-17. It also surpasses the full year numbers of $9.5 billion and $6.4 billion seen in financial years 2015-16 and 2014-15 respectively.
The state is followed by Karnataka, which saw inflows of $4.7 billion in the first six months of the current fiscal. Delhi was third with inflows of $3.5 billion.
The maximum FDI inflow of $6 billion was seen in the telecommunications sector this year. It was followed by computer hardware and software which saw inflows of $3 billion. The services sector (which includes finance, banking, insurance, outsourcing, logistics, technology among others) was third with inflows of $2.9 billion. Overall in India’s history, the services sector has the maximum FDI of $59.5 billion, about 18 per cent share.