SRINAGAR: Despite heightened official optimism and repeated outreach to global investors after the abrogation of Article 370, Jammu and Kashmir has received the lowest foreign direct investment (FDI) equity inflows in India over the last five years, data tabled in the Rajya Sabha shows.
Between October 2019 and September 2024, Jammu and Kashmir attracted just Rs 10.52 crore in FDI — a sum that places the Union Territory at the bottom of the national FDI chart. The figure is stark, not just in absolute terms but also in comparison to India’s cumulative FDI equity inflow of Rs 21.62 lakh crore during the same period.
The year-wise inflow into J&K reflects this marginal trend: Rs 1.67 crore in 2020–21, Rs 1.23 crore in 2021–22, Rs 6.03 crore in 2022–23, a paltry Rs 0.02 crore in 2023–24, and Rs 1.57 crore in the first half of 2024–25.
In contrast, Maharashtra remained the top recipient of foreign investment during this period, with over Rs 5.54 lakh crore in cumulative FDI equity inflow. It was followed by Karnataka (Rs 3.88 lakh crore), Gujarat (Rs 2.28 lakh crore), Delhi (Rs 2.02 lakh crore), and Tamil Nadu (Rs 1.18 lakh crore). Even smaller Union Territories such as Dadra and Nagar Haveli and Daman and Diu received higher inflows than Jammu and Kashmir.
The data also included a sectoral breakdown at the national level, listing the top five sectors that attracted FDI across India during these five years. These were the services sector (Rs 4.42 lakh crore), computer software and hardware (Rs 2.57 lakh crore), trading (Rs 1.65 lakh crore), telecommunications (Rs 1.14 lakh crore), and construction (infrastructure) activities (Rs 1.08 lakh crore). Jammu and Kashmir, however, was not reflected in the sector-wise table due to the negligible amount of FDI it attracted.
The latest figures are at odds with the government’s post-2019 pitch to project Jammu and Kashmir as an investment destination following the revocation of its special constitutional status. Numerous investment summits, land banks for industries, and promises of ease of doing business were expected to create an investment-friendly climate. However, the numbers suggest that foreign capital remains cautious, with security concerns, administrative complexities, and limited industrial depth still acting as constraints.
At the same time, the region continues to benefit from large-scale central government investment, with around Rs 73,422 crore worth of projects currently under implementation in sectors such as roads, power, health, and education.
