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ORIGINAL ARTICLE
Analysing the FDI Disparity in India: A Comparative Study of Kerala With the Top Three FDI Receiving States (Maharashtra, Karnataka, & Gujarat)
1
MSc Economics and Data Analytics Student at University College Dublin (UCD), India
2
Assistant Professor at CHRIST (Deemed to be University), Bangalore, India
These authors had equal contribution to this work
Submission date: 2025-06-26
Final revision date: 2026-01-23
Acceptance date: 2026-02-04
Online publication date: 2026-07-20
Publication date: 2026-07-20
Corresponding author
Economic and Regional Studies 2026;19(2):333-344
KEYWORDS
JEL CLASSIFICATION CODES
E01
F21
E31
TOPICS
ABSTRACT
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 also 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 thereby also provides targeted policy measures that leverage Kerala’s unique strengths to promote equitable regional development.
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