AP ranks 4th in private sector investments

Of the total outstanding investments in AP worth over Rs 12.3 lakh crore, the private sector accounts for over Rs 6.9 lakh crore, said an Assocham study

With a share of over 8 per cent, Andhra Pradesh (AP) ranks fourth in the total outstanding private sector investments (including both domestic and foreign private sectors) across India as of June 2012, apex industry body The Associated Chambers of Commerce and Industry of India (Assocham) stated on Friday.

Gujarat (12.5 per cent), Odisha (10.7 per cent) and Maharashtra (8.9 per cent) are ahead of AP in this regard, according to a sector specific analysis titled ‘Composition of Outstanding Investments Across States,’ carried out by Assocham.

Of the total outstanding investments in AP worth over Rs 12.3 lakh crore, the private sector accounts for over Rs 6.9 lakh crore thereby registering a share of over 56 per cent in the overall investments across the state.

According to Assocham, with a share of over Rs 82.9 lakh crore, the private sector accounts for over 59 per cent of the total outstanding investments across India worth over Rs 140 lakh crore as of June 2012.

Private sector investments account for 86.6 per cent of the total outstanding investments worth over Rs 4.5 lakh crore in Haryana, which has a share of about 4.8 per cent in the total private sector investments made across India.

“The flow of the private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations,” Assocham Southern Region Council chairperson, Ravindra Sannareddy, stated in a release.

“Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influence the flow of private investments,” he said, adding tax concessions, product market conditions and exit policies were effective tools of private investment attraction.

However, Assocham analysis points out that the share of private investments in the total live investments across Maharashtra, AP and Karnataka was less than the all-India average of over 59 per cent.

Kerala, Himachal Pradesh, Jammu & Kashmir, Uttarakhand and Assam have the least share, which is less than one per cent.