Gujarat tops in attracting private investment: Assocham

Mumbai: Gujarat has ranked on top for attracting investment across the country –cornering about 14 percent of total outstanding private sector investment worth over Rs 75 lakh crore as of December 2012, industry body Assocham has said.

The private sector accounts for over 62 percent of total outstanding investments worth about Rs 122 lakh crore attracted by India as of December 2012, according to a sector specific analysis – Composition of Outstanding Private Investments Across States – released by Assocham.

Of the total investments from private sources worth over Rs 75 lakh crore, the domestic private sector accounts for a majority share of about 58 percent, it said.

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“Acquiring a share of about 14 per cent in the tota l outstanding private sector investments worth over Rs 75 lakh crore … Gujarat has ranked on top for attracting maximum

private investments across India as of December 2012,” it said.

The foreign and domestic private sources account for over Rs 10 lakh crore of total outstanding investments worth over Rs 14 lakh crore attracted by Gujarat as of December 2012, Assocham said.

Odisha ranks second with private investment commitments worth over Rs 8 lakh crore.

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

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With a share of about 9.4 per cent and 9.3 pe cent, Andhra Pradesh and Maharashtra both have attracted private investments worth over Rs 7 lakh crore respectively. While,

Karnataka has attracted private investments worth over Rs 6 lakh crore.

“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,” Assocham secretary general D S Rawat said.

“Besides, tax concessions, product market conditions and exit policies are certain effective tools of private investment attraction,” he said.

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

Himachal Pradesh, Jammu and Kashmir, Uttarakhand and Assam account for a share of less than even one per cent in the total private investment commitments attracted by India.

PTI