Private sector accounts for 67% of investments in UP: Assocham

Private outstanding investments at Rs 5.7 lakh cr until Dec 2012

Private sector accounts for over 67 per cent of the total outstanding investments worth over Rs 5,70,000 crore attracted by Uttar Pradesh until December 2012.

With a share of over five per cent in total investment commitments made by the domestic and foreign private sources across India, UP had attracted private sector investments worth over Rs 3,80,000 crore.

These data have emerged in an analysis titled ‘Composition of Outstanding Private Investments Across States’ by Associated Chambers of Commerce and Industry of India (Assocham).

“With investment proposals worth Rs 75,00,000 crore, the private sector accounts for over 62 per cent of the total outstanding investments attracted by India worth Rs 1,22,000 crore during the period,” Assocham secretary general D S Rawat said.

“Inflow of private investments is influenced by bureaucratic efficiency, infrastructure facilities and ease of land acquisition and is decided by attractiveness of investment opportunities as they are mostly driven by profitability considerations,” he said.

He said besides, tax concessions, product market conditions and exit policies are certain effective tools of private investment attraction.

Gujarat top
While the private sector accounts for about 85 per cent of the total outstanding investments worth about Rs 7,00,000 crore attracted by Jharkhand, the states of Haryana, Gujarat and Chhattisgarh are other top states where private sector accounts for a share of about 70 per cent and above in total investments attracted by the state.

Acquiring a share of about 14 per cent in the total outstanding private sector investments worth over Rs 75,00,000 crore (including both domestic and foreign private sources), Gujarat ranks top for attracting maximum private investments across India as of December 2012.

Of the total outstanding investments attracted by Gujarat worth over Rs  14,00,000 crore, the foreign and domestic private sources account for Rs 10,00,000 crore, registering a share of over 71 per cent.

With a share of about 12 per cent in the total private sector investments attracted by India, Odisha ranks second with private investment commitments worth over Rs 8,00,000 crore.

Andhra Pradesh closely followed by Maharashtra and Karnataka rank amid top five states attracting maximum investment proposals from private sources.