Economic survey: Maharashtra slips to third position in FDI investment
The state slipped to third position in the first six months of this financial year in terms of foreign direct investment (FDI) inflow, according to the economic survey report 2020-21. Statistics for the past few years also indicate the FDI inflow in the state is on the decline with every passing year.
The survey has found the state has received ₹27,143 crore in FDI between April and September 2020, which is far less than the neighbouring state of Gujarat, which is currently holding the top position. It has received a whopping ₹1,19,566 crore as FDI in the current financial year (till September), while Karnataka, too, has received ₹27,548 crore, stated the report tabled by deputy chief minister Ajit Pawar in the Assembly on Friday.
Till last year, the state was favourite destination for FDI in the country. In 2019-20, the state had received ₹77,389 crore as FDI, which was around 29% of the total FDI inflow across the country. In 2018-19, it received ₹80,013 crore and in 2017-18, FDI was ₹86,244 crore, which also means the inflow is reducing in the state with every passing year.
“We are holding the top position when it comes to FDI inflow in the state. Between April 2000 and September 2020, the FDI inflow of the state was ₹8,18,522 crore, highest across the country. The other states have not received even half of what Maharashtra was getting as FDI. Karnataka has received ₹3,16,145 crore and Gujarat received ₹2,79,691 crore as FDI in the corresponding period,” the senior official from the state industries department said, citing the economic survey report.
The decline is registered despite the state’s flexible approach towards attracting more investment. Last year, the state decided to provide ‘Maha Parwana’, a master permission to the new industrial units within 48 hours of application. This permission ensures the investor won’t need any other permission and they can start construction work on the site immediately. It further guarantees that the investor will be provided all statutory permissions required to start business within maximum 30 days from the date of issuance and, if not, will be considered deemed approval.
Chief minister Uddhav Thackeray recently said Maharashtra has got an investment of ₹1,12,939 crore under Magnetic Maharashtra 2.0 — second installment of the global investors summit — by signing 54 memorandum of understandings (MoUs) in the past one year.
The quarterly unemployment rate, according to current weekly status for urban areas, also registered a rise during 2019-20. In the third quarter (October-December 2019) of the last financial year, the unemployment rate was 12.9% between the age group of 15 to 29 years and 5.5% for 15 years and above, but in the last quarter (January-March 2020), it rose to 13.8% and 6.2%, respectively, states the economic survey report.
In the current weekly status (CWS) approach, a person is considered part of the labour force if they worked or were available or looking for work for at least one hour during the survey week.