Gujarat gets 12.5% of total investment share in India: Assocham

AHMEDABAD: Gujarat accounts for the highest share in the total outstanding private sector investments including both domestic and foreign private sectors across India as of June 2012, apex industry body ASSOCHAM said.

Of the total outstanding investments in Gujarat worth over Rs 14.8 lakh crore, private sector accounts for over Rs 10.3 lakh crore thereby registering a share of about 70% in the overall investments across the western state, according to a sector specific analysis titled Composition of Outstanding Investments Across States, carried out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Gujarat received 12.5% total private investment, highest amongst all Indian states.

Besides, with a share of over Rs 82.9 lakh crore, the private sector accounts for over 59% of the total outstanding investments across India worth over Rs 140 lakh crore as of June 2012, highlights the ASSOCHAM analysis.

Private sector investments account for a whopping 86.6% in the total outstanding investments worth over Rs 4.5 lakh crore in Haryana which has a share of about 4.8% 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, said Ms Bhagyesh Soneji, chairperson of ASSOCHAM Gujarat Council while releasing the findings of the chamber s analysis.

Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influence the flow of private investments, said Ms Soneji. Tax concessions, product market conditions and exit policies are effective tools of private investment attraction.

With private sector investments worth over Rs 8.8 lakh crore, Odisha ranks second with a share of 10.7% in the total private sector investments across India. Besides, the private sector accounts for almost 75% share in the total outstanding investments worth over Rs 11.8 lakh crore across the state, according to the ASSOCHAM analysis.

Maharashtra (8.95%), Andhra Pradesh (8.4%) and Karnataka (7.2%) are other states with maximum share in outstanding private sector investments across India.

But interestingly, the share of private investments in the total live investments across these three states is less than the all-India average of over 59%, points out the ASSOCHAM analysis.

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 percent.

Table

States	Private Investment % share in India
Gujarat	12.5
Odisha	10.7
Maharashtra	8.9
Andhra Pradesh	8.4
Karnataka	7.2
Jharkhand	7.1
Tamil Nadu	5.2
West Bengal	5.0
Haryana	4.8
Uttar Pradesh	4.8
Madhya Pradesh	4.6
Chhattisgarh	3.6
Rajasthan	2.4
Bihar	1.5
Punjab	1.5
Kerala	1.0
Himanchal Pradesh	0.5
Jammu & Kashmir	0.3
Uttarakhand	0.3
Assam	0.1
Total	100

Source: ASSOCHAM analysis