90% vs the rest

Problem is that investments are going mainly to states with a head start in industrialisation

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COMPLICATING FACTOR for India's drive to attract more foreign and domestic investments to achieve its ambitions on faster growth is that they are going to only a few states. These are mostly richer states that have a head start in industrialisation. On foreign direct investments (FDIs), Maharashtra, Karnataka, Gujarat, Delhi, and Tamil Nadu account for close to 90% of cumulative inflows from October 2019 onwards. These five states also account for half of the filed industrial entrepreneur memoranda and proposed investments. It is hardly surprising that many of these states are frontrunners in the electric vehicle (EV) manufacturing ecosystem as also the drive to assemble smartphones by foreign investors like Apple, who are shifting part of their production from China and benefitting from the government's production-linked incentives. The tendency of investments to be attracted to such states only reinforces the Biblical axiom, "for whosoever hath, to him shall be given!" This reflects the agglomeration factor as these states offer significant advantages for investors with their manufacturing ec