GIS fails to attract immediate foreign investment for MP
Madhya Pradesh failed to attract any major foreign investment during the Global Investors Summit, despite 500 foreign delegates from 32 countries taking part in the mega event.indore Updated: Oct 12, 2014 16:58 IST
Madhya Pradesh failed to attract any major foreign investment during the Global Investors Summit, despite 500 foreign delegates from 32 countries taking part in the mega event.
While MP government is yet to release the figures of investment proposals by foreign investors, chief minister Shivraj Singh Chouhan while talking to media on Friday admitted that most of the Rs 6.89 lakh crore proposals received during the summit were by domestic investors.
Madhya Pradesh is home to some major MNCs including John Deree, Liugong and Volvo group. However, all these groups have come to the state after carefully accessing the potential and the opportunities and not because of any investor summit.
While business delegations from Singapore, Australia, UAE and some other countries have held talks with the MP government before the investors' summit, the actual investment proposals have been disappointing. In contrast, the domestic companies have pledged billions of dollars in different sectors including power, infrastructure and agro businesses - an apparent vote of confidence in a state seeking to boost private investments to emerge from decades of poverty.
Former chairman of Confederation of Indian Industry (CII) Madhya Pradesh chapter, Ranjan Mimani, feels that foreign investors are in wait-and-watch mode. "Foreign investment always comes in the second wave. They have come and seen the potential that the state has to offer and will be looking closely at how the investments take shape. Also, they are looking to invest in India of which Madhya Pradesh is one part."
Long held back by chronic poverty and lack of infrastructure, Madhya Pradesh is now India's fastest growing state with the government making efforts to improve ease of doing business. Besides building better infrastructure, the state is also moving to cut red tape.
However, Madhya Pradesh government can take heart from the fact that the total foreign direct investment (FDI) inflow into the state has crossed US $100 million in fiscal 2014-15 until July as against $119 million in the entire fiscal 2013-14. Moreover, several foreign dignitaries who took part in the event said they were impressed with the pace of development in Madhya Pradesh and were hopeful of doing business in future.