Analysing the FDI Disparity in India: A Comparative Study of Kerala with the Top Three FDI Receiving States (Maharashtra, Karnataka, & Gujarat)
Sushana Suzane Mathew, Manasi DashAbstract
Subject and purpose of work
Foreign Direct Investment (FDI) is crucial for a nation’s development and is a critical driver of technological advancement, employment generation, human capital development, and increased competitiveness. This study investigates the FDI inequalities in India by comparing Kerala with the top three FDI-receiving states.
Materials and methods
A data-specific FDI Attractiveness Index has been developed to evaluate and compare the investment potential of these states.
Results
The findings confirm that the significant regional concentration of FDI inflows in Maharashtra, Karnataka, and Gujarat is driven by superior infrastructure, the extent of industrial activity, and labour conditions. In contrast, Kerala faces limited industrial activity and infrastructural deficits.
Conclusions
The study also provides targeted policy measures that leverage Kerala’s unique strengths to promote equitable regional development.