5 states bagged 88% of FDI past 3 fiscals

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PM Gati Shakti National Master Plan (NMP): The PM Gati Shakti National Master Plan (NMP), a GIS-based platform with portals of various ministries/departments of government, was launched in October 2021. It is a transformative approach to facilitate data-based decisions related to integrated planning of multimodal infrastructure, thereby reducing logistics costs. The Empowered Group of Secretaries (EGoS) and Network Planning Group (NPG) have been created as an institutional arrangement.

“For enhanced capital expenditure by states for infrastructure development, the Ministry of Finance through the “Scheme for Special Assistance to States for Capital Investment for 2022-23” has made an additional provision of Rs 1,00,000 crore for disbursement among the states as long-term loans at a zero-interest rate. Out of this, under Part II of the scheme Rs 5,000 crore is specifically provided for PM Gati Shakti-related expenditure,” says the official.

Ease of Doing Business: The objective is to improve the Ease of Doing Business and Ease of Living by Simplifying, Rationalising, Digitising and Decriminalising Government to Business and Citizen Interfaces across ministries/states/UTs.

Tamil Nadu, as per the data, has wooed $6.3 billion though almost all foreign cars are made outside Chennai city. “The data does not show the real FDI flows. The problem with foreign companies is they have their corporate offices in New Delhi or Mumbai but the entire manufacturing happens in Tamil Nadu. Thus, the FDI data says that more investments have come into Maharashtra or Delhi,” says an additional chief secretary attached to the Tamil Nadu government.

“FDI will come to states which have good infrastructure like land, power, water, and transport connection. That way states like Maharashtra, Gujarat and Tamil Nadu stand out as these states have been the manufacturing states of the country due to availability of ports, airports, railway, road, and power,” says economist Venkatesh Athreya.

He says in Karnataka a majority of the investments are in the software sector and services sector. “This is a growing sector and many software companies have their main offices in and around Bengaluru,” says Athreya.

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