On Tuesday, Madhya Pradesh concluded a two-day global investors’ summit and proudly announced investment pledges worth Rs 26.61 lakh crore by global and domestic companies. That is precisely double the size of the state’s gross domestic product (GDP). Late January, Odisha, one of the mineral-rich states in the country that is betting big on its emergent manufacturing sector, boasted of investment commitments worth Rs 12.89 lakh crore (1.4 times its economy) after its Utkarsh Odisha conclave.
In just the first two months of 2025, as many as six states – Karnataka, West Bengal, Kerala and Assam being the other four — have organised such events and witnessed aggregate investment proposals worth a staggering Rs 60.5 lakh crore.
In December 2024, potential investors had huddled together in Rajasthan and Bihar. The eight states together saw pledges worth over Rs 97 lakh crore in just three months.
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Such events have been in vogue since economic liberalisation, but the size and pomp have grown manifold in the last two decades. What is remarkable about the latest season is the heightened focus on frontier areas of manufacturing like solar modules, wind turbines, hydrogen electrolysers, lithium ion storage and semiconductor wafers. The startup ecosystem is being given a big push, and patient capital is wooed as vigorously as the global tech giants and domestic conglomerates. Besides, the states have also become more responsible, as is evident from the fact that the assorted incentives being offered to investors are less of fiscal nature. Instead, easier approvals are being offered, with promise of a cordial frontline bureaucracy. Commitments are being made to make land and skilled manpower available.
Another interesting feature is that traditional manufacturing states are being given a tough competition by the states with largely consumption-driven/services-dominated economies. This could signal a harmony with the volatile global supply chains.
In fact, large commitments in investor events are not new: In last February, Uttar Pradesh flaunted investment promises to the tune of Rs 33.5 trillion, or 1.6 times the size of its economy, after a similar meet. Experience suggests that only a fraction of these promises are actually fulfilled. Yet the scale of ambition is only tending to be big, and rightly so. The trend is in sync with the country’s goal to become a $30-35 trillion economy by 2047.
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