With a share of about 12.5 per cent, Gujarat has attracted the highest share of the total outstanding private sector investments (including both domestic and foreign private sectors) across India as of June 2012, according to a study by the Associated Chambers of Commerce and Industry of India (Assocham).
As per the study conducted by Assocham, titled 'Composition of Outstanding Investments Across States', of the total outstanding investments in Gujarat worth over Rs 14.8 lakh crore, private sector accounted for over Rs 10.3 lakh crore thereby registering a share of about 70 per cent in the overall investments across the state.
Nationally, with a share of over Rs 82.9 lakh crore, the private sector accounted for over 59 per cent of the total outstanding investments across India worth over Rs 140 lakh crore as of June 2012.
Following Gujarat were states like Maharashtra (8.9 per cent), Andhra Pradesh (8.4 per cent) and Karnataka (7.2 per cent) with maximum share in outstanding private sector investments across India. However, Kerala, Himachal Pradesh, Jammu and Kashmir, Uttarakhand and Assam have the least share in India's total private sector investments which is even less than one per cent.
Private sector investments account for a whopping 86.6 per cent in 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.
"Flow of the private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations. Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influence the flow of private investments. Tax concessions, product market conditions and exit policies are effective tools of private investment attraction," said Bhagyesh Soneji, chairperson of Assocham Gujarat Council in a statement on Friday.
Meanwhile, with private sector investments worth over Rs 8.8 lakh crore, Odisha ranks second with a share of 10.7 per cent in the total private sector investments across India. Besides, the private sector accounts for almost 75 per cent share in the total outstanding investments worth over Rs 11.8 lakh crore across the state, according to the Assocham analysis.
