Why there is spatial variation in FDI in India?

Explanation

Major share of both domestic investment as well 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 per cent) was for industrially developed Maharashtra, 17 per cent for Gujarat, 7 per cent for Andhra Pradesh, and about 6 per cent for Tamil Nadu while Uttar Pradesh, the state with the largest population has only 8 per cent. In spite of several concessions, seven 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.