State investment summits: India’s state governments have been making concerted efforts in recent years not only to attract foreign direct investment, but also to strengthen bilateral trade with countries that have signed free trade agreements with India. The trend of state governments becoming active stakeholders in India’s economic outreach began in the late 1990s and early 2000s. Initially, the primary tool for attracting FDI was roadshows overseas, led by state governments. However, in the past decade, several states have hosted annual investor summits to showcase their investment potential.
The importance of cooperative federalism—a collaborative approach between the Union and state governments to drive economic progress—has been widely recognised by policy makers. In recent years, there has also been an emphasis on competitive federalism, where states compete to attract investments and improve their business environments. The rise of investor summits can be seen as an important step towards fostering competitive federalism. Additionally, initiatives such as the ease of doing business rankings and various policy reforms have further strengthened the competitive spirit between states.
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Takeaways from state investment summits
Madhya Pradesh hosted its Global Investor Summit from February 24-25, 2025, generating investment proposals worth Rs 30.77 lakh crore—approximately 2.5 times the state’s GDP. This staggering figure was three times greater than the investment commitments achieved by Karnataka, India’s second-largest FDI recipient and a leader in industrialisation.
Kerala held the Invest Kerala Global Summit on February 21-22, 2025, focusing on positioning the state as an industry hub. Key sectors of interest included tourism, food processing, health innovations, fintech, AI, aerospace, defence, and sustainable technologies. A significant highlight was the emphasis on strengthening economic ties with Gulf nations, including Bahrain and the UAE.
Karnataka’s Investment Summit, held from February 12-14, 2025, attracted representatives from 19 countries, reinforcing its position as a top investment destination. Meanwhile, the Bengal Global Investment Summit took place on February 5-6, 2025, featuring participation from 40 nations and engagements with 25 ambassadors and high commissioners. The West Bengal government underscored the state’s strategic location as a gateway to India’s Northeast and an essential player in the Act East policy.
The Assam government organised the ‘Advantage Assam’ summit on February 25-26, 2025, securing investment proposals worth Rs 4.78 lakh crore from 270 companies. Of this, domestic Indian corporates committed Rs 1.25 lakh crore, while public sector companies pledged Rs 78,000 crore towards infrastructure development. Assam highlighted its geographic advantage in strengthening trade ties with Southeast Asia under the Act East policy.
Rajasthan’s investment summit, held from December 9-11, 2024, included an MSME conclave and the Pravasi Rajasthani Conclave. The event attracted participation from 15 countries, including Russia, the UK, Australia, and Germany.
Across all these summits, a noticeable trend was the growing focus on AI and emerging technologies, signalling a broader shift towards innovation-driven economic growth.
Investment commitments vs actual implementations
While investment summits generate enthusiasm and media coverage, scepticism remains about the actual realisation of investment commitments. The Memorandums of Understanding (MoUs) signed during these events often exceed a state’s Gross State Domestic Product (GSDP), but the rate of actual implementation tends to be significantly lower.
Despite the ambitious commitments announced, India received only $10.58 billion in FDI in 2024 (less than ₹1 lakh crore). According to the All Rajya Trade and Industry Association (ARTIA), a Rajasthan-based trade body, less than 10% of the investment proposals received in Rajasthan during 2022 were implemented. Similar trends have been observed in other states over previous years.
However, these summits still serve an essential function. They provide states with increased visibility among investors, enhance their credibility, and offer a platform for gathering valuable feedback from potential investors. Even if a fraction of the announced investments materialises, these events contribute to long-term economic planning and industrial growth.
Beyond investment pledges
Investment summits are largely aimed at securing commitments from domestic and international investors, but their potential as platforms for promoting foreign trade remains underutilised. States such as Karnataka, Kerala, and West Bengal, which have strong export-oriented industries, should leverage these summits to establish direct trade linkages with foreign markets.
To maximise their effectiveness, states should adopt a more strategic approach. First, investment summits should be used as a means to engage directly with foreign trade delegations and establish long-term trade partnerships. Second, states should align their investment and trade strategies with their industrial strengths, geographical advantages, and historical trade relations. Third, governments must track and facilitate the execution of investment agreements to ensure tangible economic benefits rather than relying solely on MoU announcements.
Investment summits, if executed effectively, serve as a valuable tool for economic growth by fostering industry-government collaboration, attracting top investors, and enhancing states’ industrial profiles. However, to derive maximum benefits, states must go beyond securing investment pledges. A well-thought-out strategy focusing on strengthening global trade connections, ensuring policy implementation, and fostering an innovation-driven business environment is essential for long-term economic success.
Tridivesh Singh Maini is an Assistant Professor at the Jindal School of International Affairs — OP Jindal Global University, Sonipat. Dr. Amlan Ray is a researcher in international trade and academic head at Sunstone Education Technology Pvt Ltd.