UP among top 2 domestic investment destinations

Attracted investment plans of Rs 2 lakh crore in H1.

The predominantly agrarian economy of Uttar Pradesh has emerged as the second most preferred investment destination in India after Karnataka.

Uttar Pradesh registered a growth of 75 per cent (year-on-year) and 4.7 per cent share of total investment commitments made during April-September 2010-11.

According to the Associated Chambers of Commerce and Industry of India (Assocham) Investment Meter (AIM), Uttar Pradesh attracted massive investment plans of about Rs 2,05,000 crore during the first half. Power and services were prominent sectors which attracted major investments.

Among the top 20 investment attracting states, Karnataka has emerged as a preferred destination with the highest share of over nine per cent in domestic investment plans.

According to the AIM assessment for corporate investments across states and sectors, total investment plans of India Incorporated increased significantly from Rs 7,970,000 crore in 2009 to Rs 10,097,000 crore during the current financial year.

“The total investment intentions tracked in AIM reflects encouraging signs of pick up in investments and acceleration in the overall growth rate. Factors like delay in infrastructure expansion plans, hurdles in legal procedures and political instability have adversely affected the implementation of these investment projects across India,” Assocham president Dilip Modi said.

With increasing energy requirements of the rapidly growing economy, the power sector witnessed the bulk investments worth Rs 3,644,000 crore with a share of 35 per cent in the overall investment plans.

The availability of rich mineral resources like coal and iron ore along with cheap availability of manpower helped Jharkhand rank amongst the top three states in attracting corporate investments.

Gujarat and Orissa secured fourth and fifth position by attracting investment plans worth Rs 1,96,000 crore and Rs 1,91,000 crore respectively.

Manufacturing has also been favoured as a sector for investment. The sector registered a growth of 26 per cent attracting total investment of Rs 27,04,000 crore.