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FDI inflow to Bihar, Jharkhand decline by 294% in 2016-17

Against Rs 272 crore in the first nine months of fiscal 2015-16, the cumulative FDI inflows into Bihar and Jharkhand stood at just Rs 69 crore during April-December, 2016.

india Updated: Apr 02, 2017 08:57 IST
Sumanta Ray Chaudhuri
Industrialists believe cutting red tape most important towards attracting FDI in Bihar.
Industrialists believe cutting red tape most important towards attracting FDI in Bihar. (Reuters representative image)

Cumulative foreign direct investment (FDI) investment in Bihar and Jharkhand declined by 294% during first nine months of 2016-17 from the figure recorded during corresponding period of previous fiscal.

 As per statistics of Reserve Bank of India (RBI), Patna regional office, that covers both Bihar and Jharkhand, during April-December, 2016, the cumulative FDI inflows into these two states stood at just Rs 69 crore. 

This is in contrast to April- December, 2015, i.e the first nine months of the previous fiscal of 2015-16, when the figure for these two states stood at Rs 272 crore or $43 million.

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  • Infrastructure problem and bureaucratic red-tapism are two major hurdles in ensuring FDI inflow
  • As per RBI, during April-December 2016, cumulative FDI inflows into Bihar & Jharkhand stood at just Rs 69 crore

Department of Industrial Policy & Promotion (DIPP) under the Union commerce ministry, compiled statements of FDI inflows collected from 18 regional offices of RBI. 

 However, the figure in the first nine months of current fiscal is marginally better than what it was during the entire fiscal of 2014-15, when the figure was Rs 68 crore. 

 Bihar industries secretary, S Siddharth, refused to comment on this matter. “I really have no idea about these figures and so I cannot comment,” Siddharth told the Hindustan Times

First thing that is necessary to attract FDI is image makeover of Bihar .

- Sanjay Goenka, ex-VP, BIA

Former vice-president of Bihar Industries Association (BIA), Sanjay Goenka, said that the first thing that is necessary to attract FDI is image makeover of Bihar and projecting it as an investor-friendly state. “Good that investors from other states have started taking interest in Bihar during the last couple of years. If this continues, then only will we be in a position to attract foreign investors,” Goenka said. 

 Meanwhile, secretary general of Federation of Jharkhand Chamber of Commerce & Industries, Ranjeet Kumar Garodia, said that infrastructure problem and bureaucratic red- tapism are two major hurdles in ensuring FDI inflow for Bihar and Jharkhand. 

 Jharkhand industries secretary Sunil Kumar Barnwal could not be contacted for his response.