In the fiscal year 2022-23, Uttar Pradesh (UP) and Gujarat emerged as leading states in India regarding new investments. As per a report by the Reserve Bank of India (RBI), these two states jointly contributed to 57.2% of the overall investment propositions during the period.
Uttar Pradesh took the lead in attracting the largest chunk of new investments with a cumulative project cost of Rs. 43,180 crore, followed by Gujarat with Rs. 37,317 crore then Odisha (Rs. 11,810 crore), Maharashtra (Rs. 7,900 crore) and Karnataka (Rs. 7,300 crore).
Among the top 10 states, others included Tamil Nadu (Rs. 6,100 crore), Telangana (Rs. 5,300 crore), Andhra Pradesh (Rs. 4,900 crore) and Madhya Pradesh (Rs. 4,500 crore). The upsurge in investments in these states as outlined by the RBI study can be attributed to several factors such as improved business environment expansive and growing markets and strategic geographical positioning.
For instance, Uttar Pradesh has been proactively enhancing its investment atmosphere in recent times. It has introduced several initiatives to allure new enterprises, including the UP Investors’ Facilitation Portal the UP Industrial Development Policy 2020 and the UP Startup Policy 2021. Similarly, Gujarat has also demonstrated success in attracting fresh investments due to its robust infrastructure and skilled workforce. Moreover, the presence of Special Economic Zones (SEZs) in Gujarat provides added incentives for investors.
This increase in investment activity within these states bodes well for the Indian economy, expectedly fostering job creation and bolstering economic expansion.