TN FDI inflow at ₹12,272 crore till September end: Commerce Ministry

Tamil Nadu has received ₹12,272 crore in foreign direct investments till end of September 2022, as per data released by the Union Commerce Ministry.

This is against ₹22,396 crore received in the full financial year of 2021-22.

Tamil Nadu is at 5th place in wooing foreign investments into the state with Maharashtra at the first place wooing ₹62,425 crore foreign direct investments followed by Karnataka with ₹41,678 crore FDIs.

In the first quarter of the present financial year 2022-23, Tamil Nadu was able to woo ₹196 crore more in foreign direct investments as compared to the same period in 2021-22.

Of the total FDI coming into the country, Tamil Nadu woos five per cent, while Maharashtra leads with 28 per cent followed by Karnataka with 24 per cent and Gujarat with 19 per cent. Tamil Nadu is at the 5th place after Delhi and the above mentioned three states.

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Maharashtra wooed a total FDI worth ₹62,425 crore till September end followed by Karnataka with a total FDI worth ₹41,678 crore. Gujarat and Delhi were able to woo a total FDI worth ₹26,866 crore and ₹35,486 crore respectively.

Tamil Nadu has wooed one per cent more FDI in the last few years, compared to the first quarter of 2022-23, as per data released by the union commerce ministry.

Not a correct reflection of investments

Government officials say that the data might not be a correct reflection of the investments happening in the state. “Many companies head-quartered in places like the Delhi-NCR Region and Mumbai that are investing in Tamil Nadu, get recorded at the local regional office of RBI,” an official contended.

“The intense lockdown for nearly one quarter of the last financial year, affected investments and coupled with that is the assembly elections. Since December, all political parties have gone on the election mode and many companies have decided to wait and watch for the elections to get over,” said the official.

In the financial year ending March 31, 2021, a total of ₹81,722 crore has been received as FDI inflows into the country. The year marked an increase of ten per cent over the previous year’s FDI inflows, as per the data.

Also Read: Tamil Nadu sees rise in FDI; Maharashtra, Karnataka lead the table

Mauritius and Singapore were the main source of foreign investments into the country. Nearly 50 per cent of the all FDI inflows were from these two countries with Mauritius topping with 28.01 per cent and Singapore with 21.73 per cent. The US came a distant third with 8.23 per cent and Netherlands and Japan contributing nearly seven per cent each.

Service’s sector cornered 16 per cent of the investments. Services include finance, banking, insurance, business outsourcing, R&D, courier, technology testing and analysis. Computer software and hardware cornered 13 per cent of the investments.