Gujarat Replaced UP as Top Investment Destination in FY24 : RBI Study

Current Context: In the fiscal year 2023-24, Gujarat outpaced Uttar Pradesh (UP) as the leading investment destination for bank-funded projects, according to a study by RBI economists.

• Gujarat secured funding for 154 projects, accounting for 14.7% of the total ₹3.9 lakh crore financed by banks and financial institutions.
• This marked an increase from the previous year’s 14% share.
• Meanwhile, UP received funds for 69 projects, with its share dropping to 7.6% from 16.2% in the previous year.
• Notably, the infrastructure sector attracted a significant portion of capital investments, reflecting the government’s focus on infrastructure development.
• Maharashtra, Andhra Pradesh, and Gujarat were the other states in the top five for project funding from banks and financial institutions, together accounting for approximately 55% of the total sanctioned project cost in 2023-24.

Question:

1 Which state outpaced Uttar Pradesh as the leading investment destination for bank-funded projects in FY 2023-24?

• A) Maharashtra
• B) Gujarat
• C) Andhra Pradesh
• D) Tamil Nadu

Answer: B) Gujarat secured funding for 154 projects, making it the leading investment destination, surpassing Uttar Pradesh.