Gujarat Emerges One Of The Leaders For Investments Among Forward Looking States

Gujarat has emerged a leader among five top States i.e.  Maharashtra, Orissa, Andhra Pradesh and Karnataka in becoming preferred investment destinations and in attracting 52.42 % of total investment of Rs. 1,04,93,602 crore for 20 States  as on 31st March, 2010, according to a study undertaken by ASSOCHAM.

While releasing the study, Chamber Secretary General, Mr. D S Rawat said that  Gujarat attracted investment proposals of Rs.1201785 crore, Maharashtra was close to Rs.1036115 crore, Orissa Rs. 985929 crore, Andhra Pradesh Rs. 809600 crore, Karnataka Rs. 733457 crore and  the remaining 15 states received Rs. 6167548 crore worth proposals only.

The study observed that Tamil Nadu was at sixth position by attracting investment worth Rs. 658116 crore and West Bengal at seventh position with Rs. 579029 crore investment proposals.

The remaining 15  States were Tamil Nadu (Rs. 658116 crore), West Bengal (Rs. 579029 crore), Jharkhand (Rs. 529401 crore), Chhattisgarh (Rs. 412497 crore), Uttar Pradesh (Rs. 410161 crore), Madhya Pradesh (Rs. 371087 crore), Haryana (Rs. 316823 crore), Rajasthan (Rs. 246841 crore), Kerala (Rs. 211956 crore), Punjab (Rs. 172226 crore), Bihar (Rs. 112588 crore), Uttarakhand (Rs. 94038 crore), Jammu & Kashmir (Rs. 80108 crore), Himachal Pradesh (Rs. 78231 crore) and Assam (Rs. 52952 crore).

The highest amount of investment has gone into electricity (40.3%), services (22.6 %), manufacturing (22.1 %), real estate (9.9 %), mining (2.4 %) and irrigation (2.3 %).

Mr. Rawat also said that Investment in primary sector, represented by irrigation, has highest share in Andhra Pradesh. Next to A.P. are Bihar, Karnataka, Gujarat andMaharashtra. As against these states, Chhattisgarh, J&K, Haryana, Tamil Nadu and Orissa, in that order, gave least priority to investing in irrigation development.

Mining has got highest shares in live investments in states of Orissa, Assam, Rajasthan and Andhra Pradesh. As opposed to this trend, mining sector got the least share in total investments in Kerala, Uttarakhand, J&K, Haryana and Himachal Pradesh.

Manufacturing is expected to achieve higher growth relatively to other sectors in states of Jharkhand, Karnataka, West Bengal, Assam and Orissa. Conversely, manufacturing got lower shares in J&K, Haryana, U.P., Kerala and Uttarakhand.

As regards share of electricity, sector has got the highest share of investments in states of Uttarakhand, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, and Bihar. The bottom five states to focus on electricity are Karnataka, Kerala, Haryana, Assam and A.P, added Mr. Rawat.

Kerala, J&K, Punjab, Assam and Maharashtra emphasize more on development of services sector. The states of Himachal Pradesh, Rajasthan, Karnataka, Haryana and Gujarat have lesser focus on services sector.

Gujarat, of total proposals worth Rs. 1201785 crore, attracted 39.1% in electricity, 25.9 % in manufacturing, 18.7 % in services, 11.5 % in real estate, 3.4 % in irrigation and 1.2 % in mining.

Maharashtra, of total proposals worth Rs. 1036115 crore, attracted 30.8 % in electricity, 13.2 % in manufacturing, 33.1 % in services, 19 % in real estate, 3 % in irrigation and 0.9 % in mining.

Orissa, of total proposals worth Rs. 985929 crore, attracted 42.3 % in electricity, 34.0 % in manufacturing, 7.3 % in services, 0.3 % in real estate, 0.5 % in irrigation and 15.5 % in mining.

Andhra Pradesh, of total proposals worth Rs. 809600 crore, attracted 26.9 % in electricity, 23.8 % in manufacturing, 19.8 % in services, 11.8 % in real estate, 14.1 % in irrigation and 3.5 % in mining.

Karnataka, of total proposals worth Rs. 733457 crore, attracted 22.3 % in electricity, 42.5 % in manufacturing, 16.2 % in services, 13.2 % in real estate, 4.1 % in irrigation and 1.7 % in mining.

For real estate sector, Haryana was a major destination as it attracted 57.8% of total investment proposals. For electricity sector, Uttarakhand received 80.6 % of total investment of Rs. 94038 crore, followed by Chhattisgarh, 68.2 % (Rs.412497 crore), Himachal Pradesh 63.6 % (Rs. 78231 crore), Madhya Pradesh 58.4 % (Rs. 371087 crore) and Bihar 56.7 % (Rs. 112588 crore).

West Bengal emerged second to Jharkhand as far as manufacturing was concerned. Jharkhand attracted 62.2 % (Rs.529401 crore). Karnataka, 42.5 % (Rs. 733457 crore) followed by West Bengal 40.9 % (Rs. 579029 crore), Assam, 34.1 % (Rs. 52952 crore) and Orissa, 34.0 % (Rs. 985929 crore).