TG's FDI inflows double to $3 billion, Congress government outperforms BRS in attracting investments
Hyderabad: Telangana has received $3 billion worth Foreign Direct Investment (FDI) in the financial year 2024, which doubled the investment that the state received in the previous financial year, trailing only to Gujarat.
Industry experts attribute this success to the Congress government's business-friendly initiatives and a policy-driven approach. Chief Minister A. Revanth Reddy's strategic promotion of Telangana as a premier investment destination, notably during the World Economic Forum (WEF) summit in Davos in January this year, has played a pivotal role in attracting global investors.
While Gujarat topped the country with the highest growth rate of 201 per cent, Telangana stood second at 109.7 per cent growth rate.
In FY2023, Telangana attracted FDI of 1.3 billion dollars which has more than doubled to 3 billion dollars in FY2024, according to the data released by the Department for the Promotion of Industry and Internal Trade (DPIIT).
The Revanth Reddy government followed a low-key approach despite attracting double the FDI over the previous BRS regime. Revanth Reddy's efforts to attract FDI have been characterised by a silent yet effective outreach to investors owing to the model code of conduct (MCC) for Lok Sabha elections.
The Congress government did not indulge in too much publicity like the previous BRS regim but ensured that it did not overshadow the substantive work being done behind the scenes.
Industry circles said the key to the government's success was Revanth Reddy's ambitious Hyderabad 3.0 vision, which focuses on developing three clusters. Developing Hyderabad cluster within the Hyderabad Outer Ring Road (ORR), Semi Urban Cluster between the ORR and the Regional Ring Road (RRR) and Rural cluster in the surrounding areas beyond the Regional Ring Road.
These clusters will help to encourage the establishment of industries, they said. This comprehensive development plan has made Telangana an appealing prospect for diverse
investment portfolios.
The recent WEF summit in Davos proved to be a significant milestone for Telangana, with FDI deals nearly doubling as the state attracted investments worth over Rs 40,000 crore, the highest-ever, in the Davos summit held in January this year. This achievement came just weeks after the new government took office on December 7, 2023, indicating the effectiveness of its swift action and clear policy directives.
The government's commitment to give rapid clearances for industries with zero corruption attracted investors towards Telangana. These factors have facilitated swift decision-making by both global and Asian business majors for making investments in Telangana.
Industry circles opined that Revanth Reddy's leadership and strategic vision have been instrumental in positioning Telangana as a leading destination for FDI. They said Revanth's approach aligns with Bill Gates' mantra of doing business at the speed of thought, ensuring that
Telangana remains agile and responsive to the needs of the global business community.
The Chief Minister's assertive declaration to global business leaders that "Telangana means business" has resonated well, contributing to the state's growing reputation as a dynamic and investor-friendly region, they added.