Maharashtra tops Gujarat as investment destination: Assocham
According to an Assocham report, Maharashtra replacing Gujarat has appeared to be the number one investment destination in the country.
An analysis by the industry group illustrated, as on December 2013 Maharashtra attracted investment proposals of Rs 14,73,466 crore cumulatively, while Gujarat drew proposals worth Rs 13,98,347 crore.
The state’s focus on development of industrial centers in tier-II and tier-III cities is the primary reason behind Maharashtra overtaking Gujarat, making it the preferred choice of investments, especially for the Indian and global service sector industries, it said.
In 2013 Maharashtra attracted an investment of over Rs 67,000 crore, becoming the hub for the service and electricity industries. However, in contrast Gujarat attracted nearly Rs 62,000 crore in the same year, the study observed.
On December 2011Gujarat had attracted investment proposals of Rs 16, 28,126 crore, with Maharashtra coming in second with proposed investments of Rs 14, 13,728 crore.
The study said the value of investment proposals registered a decline in three of the top five destinations – Gujarat, Andhra Pradesh and Odisha.
Assocham President Rana Kapoor
Assocham President Rana Kapoor said that in the last two years there have been remarkable changes regarding the individual positions of India’s preferred investment destinations. However, the overall composition of lead investment destination states remains largely unchanged..
Kapoor added, “During the last two years till December 2013 the combined share of the country’s five top investment destinations has reduced from 53.6% to 48.2%.”
As on December 2013, Andhra Pradesh, Odisha and Karnataka are the other three states that attracted the most investment proposals and the top five states together accounted for 48.2% of the total of Rs 1,30,50,467 crore, according to the study.
The remaining investment proposals went to 15 other states worth a combined Rs 61, 50,105 crore.
Of the investment proposals, the highest amount was in electricity (36.5%), services (23.6%), manufacturing (23%), construction & real estate (11.1%), irrigation (3%) and mining (2.8%).
Maharashtra attracted 38.2% in services, 28.3% in electricity, 19.3% in construction & real estate, 10.5% in manufacturing, 2.5% in irrigation and 1.2% in the mining sector.
Gujarat attracted 39.4% in electricity, 22.2% in services, 20.8% in manufacturing, 13.6% in construction & real estate, 2.5% in irrigation and 1.6% in the mining sector.
Source: Financial Chronicle
Andhra Pradesh, ASSOCHAM, Global service sector industries, Gujarat, Industrial centers, Investment, investment destination, Maharashtra, Odisha, Rana Kapoor
