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Why there is spatial variation in FDI in India?

Answer» <html><body><p></p>Solution :Major share of both <a href="https://interviewquestions.tuteehub.com/tag/domestic-957937" style="font-weight:bold;" target="_blank" title="Click to know more about DOMESTIC">DOMESTIC</a> investment as <a href="https://interviewquestions.tuteehub.com/tag/well-734398" style="font-weight:bold;" target="_blank" title="Click to know more about WELL">WELL</a> as foreign direct investment went to already developed states. For example, out of the total proposed investment by the industrial entrepreneurs during 1991-2000 nearly one fourth (23 <a href="https://interviewquestions.tuteehub.com/tag/per-590802" style="font-weight:bold;" target="_blank" title="Click to know more about PER">PER</a> cent) was for industrially developed Maharashtra, 17 per cent for Gujarat, 7 per cent for Andhra Pradesh, and about 6 per cent for <a href="https://interviewquestions.tuteehub.com/tag/tamil-663053" style="font-weight:bold;" target="_blank" title="Click to know more about TAMIL">TAMIL</a> Nadu while Uttar Pradesh, the state with the largest population has only 8 per cent. In spite of several concessions, <a href="https://interviewquestions.tuteehub.com/tag/seven-640525" style="font-weight:bold;" target="_blank" title="Click to know more about SEVEN">SEVEN</a> north-eastern states could get less than 1 per cent of the proposed investment. In fact, economically weaker states could not compete with the developed states in open market in attracting industrial investment proposals and hence they are likely to suffer from these processes.</body></html>


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