Amidst concerns over flight of investment from the State, the Economic Survey 2015-16 tabled by Finance Minister Arun Jaitley in Parliament on Friday stated that Karnataka is the third largest recipient of foreign direct investment (FDI) in the country.
Karnataka received FDI amounting $3,266.48 million during April-November 2015 against $3,443.89 million in April-March 2014-15. During April 2014 to November 2015, the State received FDI totalling $6,710.36 million, constituting 12.04 per cent of the country’s FDI.
A State-wise analysis of FDI inflows to different Indian States showed a clear regional disparity.
Delhi, Haryana, Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Andhra Pradesh together attracted more than 70 per cent of total FDI inflows to India in the last 15 years. Except Delhi, all States have seen a decrease in FDI flow between 2014-15 and 2015-16.
However, States with vast natural resources like Jharkhand, Bihar, Madhya Pradesh, Chhattisgarh, and Odisha have not been able to attract foreign funds directly for investment in different sectors.
Inflation
A State-wise analysis of inflation shows that CPI-based general and food inflation declined during the current year in most States. Yet, there are exceptions. Karnataka, Andhra Pradesh, Telangana, and Jammu and Kashmir experienced higher inflation during April-December 2015 compared to the corresponding period of the previous year.
The reason for rising inflation in these States has been higher food inflation, it said.
Drip irrigation
Adoption of drip irrigation has provided immense benefit to farmers in Karnataka and other States, according to the Economic Survey. An impact evaluation of National Mission on Micro Irrigation in Karnataka and other States has revealed benefits of drip irrigation to farmers. Karnataka has been providing subsidy to farmers for adoption of drip irrigation.
The Survey said provisions for credit to farmers can incentivise greater adoption of this technology.
Positive results
Results from the impact evaluation conducted in 64 districts of 13 States — Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Karnataka, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Sikkim, Uttar Pradesh, and Uttarakhand — revealed the benefits of drip irrigation.
There have been substantial reductions in irrigation costs and savings on electricity and fertilisers. This is because water is efficiently supplied and hence, pumps are used for a limited time.
