Tamil Nadu ended the 2021-22 fiscal with foreign direct investment (FDI) of ₹22,396 crore, up about 30.1% from ₹17,208 crore in 2020-21.
In dollar terms, the FDI increased to about $3 billion in 2021-22 from about $2.3 billion in 2020-21, according to data from the Department for Promotion of Industry and Internal Trade under the Union Ministry of Commerce and Industry.
Karnataka topped the table, with $22 billion of FDI, followed by Maharashtra with $15.4 billion. Delhi had about $8.2 billion, followed by Tamil Nadu with $3 billion and Gujarat with $2.7 billion. As for the cumulative inflow of FDI from October 2019 to March 2022, Maharashtra topped with a share of 28%, followed by Karnataka, 24%, and Gujarat, 19%, Delhi, 12%, and Tamil Nadu, 4%, in dollar terms.
130 MoUs signed
According to the policy note of Tamil Nadu’s Department of Industries for 2022-23, in the 2021-22 fiscal, the State government signed 130 memoranda of understanding (MoUs) with companies for a cumulative investment of ₹68,375 crore capable of creating jobs for over 2.05 lakh persons. Among them were six MoUs, involving an investment of ₹6,100 crore, signed during Chief Minister M.K. Stalin’s visit to the UAE. Of the 130 MoUs, 77 projects have commenced establishment, with six having started production, the note said.
The investment was across areas in focus sectors such as electronics, auto-components, industrial parks, Free Trade Warehouse Zones, IT/ITeS, general manufacturing, food-processing, footwear, pharmaceuticals and textiles, as well as new areas such as furniture manufacturing and electric vehicle charging infrastructure. The investment has been channelled to various districts to ensure a balanced regional development.
Tamil Nadu has been a major recipient of FDI; it received $36.90 billion between April 2000 and December 2021. It is among the top five States in receipt of FDI. Between July and December last year, the State attracted over ₹12,000 crore in FDI.
The trend may continue with Guidance, the State’s nodal agency for investment promotion, planning a series of measures for 2022-23 to improve the investment climate. The aim is to get companies in high value-added segments to establish manufacturing units. Recently, Minister for Industries Thangam Thennarasu led a delegation to the World Economic Forum in Davos, hoping to attract more FDI.
