Centre's faulty policies, laxity of previous BJP govt caused FDI decline in Karnataka: State Minister Patil
Jun 03, 2024
Bengaluru (Karnataka) [India], June 3 : Karnataka, Large and Medium Industries Minister MB Patil has alleged that the faulty policies and a lack of vision of the Union government has led to the reduced Foreign Direct Investment in the State.
He also alleged that the Centre is diverting the investors towards Maharashtra and Gujarat.
"The data released by the central government reflect the declining trend in FDI to India," Patil said.
Blaming faulty policies and the lack of vision of the union government for reduced FDI, he added that global developments also might have contributed to this.
"The FDI to India has decreased from 71 billion dollars in FY23 to 70 billion dollars in FY24. The FDI which stood at Rs 4.42 lakh crore in FY 21-22 reduced to Rs 3.67 lakh crore in FY 22-23, Rs 3.427 lakh crore in FY 23-24," Patil stated.
"The FDI equity investment in FY 23-24 has seen a reduction of just 3 per cent as compared to the previous year. However, this fall is over 25 per cent as compared to the previous four years," Patil said.
Patil argued that there is a negative impact on the state also as it is true for the entire country. "But, there is no sharp decline in FY 23-24. The state government has taken constructive measures to better the scenario," he elaborated.
He also emphasized that despite many challenges, Karnataka has attracted investments worth crores across various sectors.
"Despite many challenges and adverse geopolitical conditions, Karnataka has attracted investments worth Rs1.13 lakh crore in 2023-24 across various sectors of ESDM, Li-ion Battery Manufacturing for EVs (Electric Vehicles), Core Manufacturing (Steel), Automobiles, Data Centres, among many others. The manufacturing sector has shown promising momentum," he added.
Patil also mentioned that the central government has been focusing on local assembling industries in the manufacturing sector. However, such industries need to depend on foreign countries for their operations.
"The hurdles in supplying components from foreign countries and tax norms have negatively impacted these industries resulting in a decrease in FDI. The central government should consider expert opinion to resolve such issues," Patil said.
