- Karnataka attracted the country’s maximum share of Foreign Direct Investment (FDI) in the April-June quarter
- Karnataka Udyog Mitra or the KUM has been widely attributed to the state’s extraordinary performance in the FDI sector by government officials.
- On the other hand, the botched-up Covid strategy along with myriad scandals at the government level added to Maharashtra’s waning economic glory.
Maharashtra is fast losing its status as the growth engine of the Indian economy. The state has recently ceded the first position to Karnataka in terms of bagging the highest foreign direct investment (FDI) among Indian states in the first quarter of the fiscal year 2021-22. The state accounted for 48 percent of the total FDI poured into the country during the three months, illustrating a robust business environment in the BJP-ruled state.
The industries minister Murugesh Nirani announced on Wednesday that the state government has recorded an investment of Rs 62,085 crore for the duration of April-June 2021-22. On the other hand, Maharashtra managed to attract FDI worth Rs 30,141 crore for the same period rendering it the second position nationwide.
What is Karnataka Udyog Mitra?
Karnataka Udyog Mitra or the KUM has been widely attributed to the state’s extraordinary performance in the FDI sector by government officials. As the investment promotion and facilitation agency of the State Government, ‘Karnataka Udyog Mitra’ is the Secretariat for grant of approvals and sanction of infrastructure facilities for approved projects.
Projects with investments between USD 2 million and USD 70 million (INR 15 to 500 crores) are cleared by the State Level Single Window Clearance Committee (SLSWCC), chaired by the Minister for Large and Medium Scale Industries, Government of Karnataka. On the other hand, the larger investments are cleared by the State High-Level Clearance Committee (SHLCC), chaired by the Chief Minister of Government of Karnataka.
The KUM has immensely contributed to the state’s success in the process of bringing the FDIs into Karnataka. As per the industries minister, the National Investment Promotion and Facilitation Agency under the slogan of ‘Invest India’ has rated KUM as the top IPA agency in the country among the 20 states which were rated.
Maharashtra’s fate hangs in balance
On the other hand, Maharashtra- the jewel state of the Indian economy- is lagging far behind. The botched-up Covid strategy along with myriad scandals at the government level added to Maharashtra’s waning economic glory.
The razing pandemic forced the state government to impose harsh lockdown that took a massive toll upon the business environment in the state. According to research by Care Rating, the new “radical” lockdown imposed by the MVA government had cost around Rs 40,000 crore to the state by April this year.
“…with FY22 starting on a somber note with the lockdown fully in place for Maharashtra and to a lesser extent in other states, overall production and consumption would be affected,” read the research by Care Ratings.
The inefficient leadership of Uddhav Thackeray is costing the state as well as the nation heavily because Maharashtra accounts for around 14 percent of the country’s GDP. The state houses two of the most productive cities of the country – Mumbai, and Pune. The opportunistic alliance that surfaced two years ago, thus, seems to have not only destroyed the economy of Maharashtra but is costing heavily to India’s economy too.