25.6.14

Of Investments in States....


Under the leadership of then chief minister Narendra Modi, Gujarat emerged as the second most attractive state for the investors from 2004-05 to 2011-12. However, when it comes to implementation, the state has been ranked 20th with only 45.9% of the promised investment materializing. This is way below the national average of 57%.
According to the latest report by leading industry body Assocham, over 40% of the projects in Gujarat are yet to come out of the announcement stage. In addition, there is no information available on more than 7% projects, while 6.2% of the projects are stalled.
The information on the implementation status of investments in 20 states in India reveals that the rate of implementation of investments was the highest in Haryana (82.2%). The states of Jammu & Kashmir, Punjab, Assam and Chhattisgarh are currently witnessing very high rate of implementation while states like Gujarat, Jharkhand, Tamil Nadu, Uttarakhand and West Bengal have recorded lower implementation rates.
On the other hand, the state accounted for highest share of investment (26-33%) in key product segments of non-metallic mineral products, textiles and food & beverages during the said period.
According to a report titled `Investments in Manufacturing Sector', Gujarat also acquired second highest share of about 25% and over 18% in investments attracted by transport equipment and chemicals industry respectively . Gujarat figures amid top five manufacturing investment centres in the entire product segment.
As of March 2013, the value of live investment projects in top 20 states was worth approx Rs.122 lakh crore. However, the distribution is highly skewed. Five of these 20 states -Maharashtra, Gujarat, Andhra Pradesh, Odisha and Karnataka, have clearly emerged as the most preferred investment destinations in that order. Their cumulative share is 51.3 % of the total live investments. Assam, Himachal Pradesh, Uttarakhand, Jammu & Kashmir and Punjab have got relatively lower share in total investments.

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