Gujarat top in attracting investments but slow in execution: Assocham

AHMEDABAD: Gujarat has emerged as the top investment destination in the country attracting proposals worth over a staggering Rs 16.28 lakh crore, leading industry body Assocham said today.

"Clocking a share of 13.52 per cent in total investments of over Rs 120.34 lakh crore across 20 states (till 2011-end), Gujarat has emerged as the most lucrative investment destination attracting highest number of proposals (MoUs), worth over Rs 16.28 lakh crore," Assocham General Secretary D S Rawat told reporters.

Of the total investment proposals, Gujarat attracted 39.2 per cent in electricity, 24.2 per cent in manufacturing, 16.2 per cent in services, 14.3 per cent in real estate, 5.2 per cent in irrigation and 0.9 per cent in mining space, said Chairperson of Assocham Gujarat Council Bhagyesh Soneji.

However, an Assocham report, 'Investment And Growth Patterns, revealed the project implementation rate in Gujarat was way below the national average, and one of the most industrialised states was marginally ahead of Jharkhand.

"Gujarat is lagging behind with 41.9 per cent project implementation rate, way below the national average of 53.9 per cent, and it was just ahead of Jharkhand," Rawat said.

Jharkhand, Gujarat, Uttar Pradesh, Tamil Nadu and Madhya Pradesh have recorded lower project implementation rates, the report said.

Services sector is lagging behind in Gujarat. Big brands in IT/ITeS don't have much presence in the state, an Assocham functionary said.

Out of 20 states, the top five - Gujarat, Maharashtra, Andhra Pradesh, Odisha and Karnataka - account for 54 per cent of total investment proposals (Rs 120.34 lakh crore) as of December 2011, the apex industry body said.