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Once again, Gujarat has proved to be among the most preferred investment destinations in the country as the state has topped in the private sector investment commitments across India as on December 2012, an industry study noted.
A sector specific analysis titled ‘Composition of Outstanding Investments Across States,’ carried out by The Associated Chambers of Commerce and Industry of India (Assocham), showed that Gujarat ranked on top for attracting maximum private investments across India.
Of the total outstanding investments attracted by the state of Gujarat worth over Rs 14 lakh crore as of December 2012, foreign and domestic private sources account for over Rs 10 lakh crore thereby registering a share of about 73%, the Assocham analysis noted.
With a share of about 12% in the total private sector investments attracted by India, Odisha ranks second with private investment commitments worth over Rs 8 lakh crore. Besides, private sources account for over 75% of the total investments worth over Rs 11 lakh crore attracted by the state.
Besides, acquiring a share of about 14% in the total outstanding private sector investments worth over Rs 75 lakh crore (including both domestic and foreign private sources), Gujarat ranked on top for attracting maximum private investments across India as of December 2012.
“With investment proposals worth over Rs 75 lakh crore, the private sector accounts for over 62% of the total outstanding investments attracted by India worth about Rs 122 lakh crore during the aforesaid period,” said Bhagyesh Soneji, chairperson of the Assocham - Gujarat Council.
Jharkhand, Haryana, Orissa and Chhattisgarh are other top states where private sector accounts for a share of about 70% and above in total investments attracted by the state.
“Interestingly, Gujarat’s share in private investments across India has increased from about 12.5% in total private investments attracted by India as of June, 2012 to about 14% as of December 2012,” said Soneji.
Commenting on the Gujarat’s performance in attracting private investments, Soneji said, “This portrays the bureaucratic efficiency, infrastructure facilities and ease of land acquisition in Gujarat which has influenced the inflow of private investments that are mostly driven by profitability considerations.”
Andhra Pradesh closely followed by Maharashtra and Karnataka rank amid top five states attracting maximum investment proposals from private sources across India.
With a share of about 9.4% and 9.3%, Andhra Pradesh and Maharashtra both have attracted private investments worth over Rs 7 lakh crore each, while, Karnataka has attracted private investments worth over Rs 6 lakh crore.
Himachal Pradesh, Jammu and Kashmir, Uttarakhand and Assam account for a share of less than even one% respectively in the total private investment commitments attracted by India, the Assocham analysis noted.
