Chandigarh, Feb. 21 -- Punjab has improved its ranking in attracting foreign direct investment, recording inflows of Rs.2,711 crore (US $310 million) during the first half of the 2025-26 financial year. The state ranked 11th in the country in FDI inflows between April and September 2025 accounted for 0.88% of the FDI of Rs.3.03 lakh crore received in the country during the six-month period. Punjab improved its position from 14th place in 2024-25, when the state attracted Rs.759 crore ($90 million) in FDI. The FDI equity inflows into the state are primarily in the food processing, auto components, engineering goods and textiles sectors. Of this year's FDI inflows, around 80% came in the districts of Patiala and Ludhiana, while the remaining 20% was spread across Patiala, Jalandhar, Gurdaspur, Bathinda, and Nawanshahr districts, according to the latest official data released by the Union ministry of commerce and industry. The total FDI comprises equity inflow, equity capital of unincorporated bodies, reinvested earnings, and other capital. However, the central government maintains state-wise details only for the equity component of FDI inflows, which it started compiling from October 2019. Earlier, the FDI data was collected on the basis of the regional offices of the Reserve Bank of India (RBI), under which Punjab was clubbed with Haryana, Himachal Pradesh and Chandigarh. Cumulatively, Punjab has received FDI equity inflow of Rs.12,088 crore (US $1,541.68 million) from October 2019 to September 2025. During this period, Punjab's best ranking was ninth in the financial year 2020-21 when it received Rs.4,719.45 crore. However, FDI remained low thereafter and has picked up again during the first half (April to September) of the current fiscal year. A senior government functionary attributed the rise in FDI inflows to the state government's international outreach efforts. "We are making concerted efforts to engage with both MNCs and Indian corporates to showcase the investor-friendly policies and investment opportunities in the state," he said. As part of this push, the state government is organising the Progressive Punjab Investors' Summit in Mohali from March 13 to 15. Chief minister Bhagwant Mann, industries minister Sanjeev Arora and top officials recently travelled to Japan and South Korea to attract foreign investors. Mann and Arora also planned to travel to the United Kingdom and Israel this month, but did not receive political clearance from the Union ministry of external affairs. As per established protocol, CMs must obtain prior political clearance for foreign travel. AAP general secretary and chief spokesperson Baltej Pannu questioned the decision, insinuating selective targeting of non-BJP-ruled states. Punjab is far behind neighbouring Haryana, which ranks sixth in the country for attracting FDI with impressive inflows of Rs.1.29 lakh crore (US $16,105 million). Haryana received 5.06% of the total foreign direct equity investments nationwide between 2019 and 2026. In the first half of the 2025-26 financial year, it ranked fourth in the country, with investments of Rs.27,821 crore (US $3,228 million). Himachal received a total of Rs.425.57 crore during the same period. Maharashtra, Karnataka and Tamil Nadu were the top three states, accounting for two-thirds of the FDI inflows during the April-September 2025 period. Notwithstanding the recent increase in inflows, industry observers say poor connectivity and frequent protests remain major deterrents. "To attract foreign investors, the state needs to improve connectivity by getting more direct international flights and better rail links. Due to recurring protests and dharnas on roads and railway tracks, the experience of the industry has not been good. Who can forget the farmers' prolonged stir in 2020-21?" a Ludhiana-based industrialist told HT, requesting anonymity. However, there appears to have been a shift in the state government's approach to handling protest marches and blockades of road and railway lines. The authorities seem to be dealing with protesters more firmly lately, combining crackdowns with negotiations to avoid prolonged standoffs....