Gujarat has emerged as the top investment destination in India 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.
After Gujarat,Maharashtra was second,attracting investments worth Rs 14.14 lakh crore,followed by Andhra Pradesh and Odisha (Rs 12.09 lakh crore each) and Karnataka Rs 9.85 lakh crore. The remaining 15 states attracted total investment proposals worth Rs 55.89 lakh crore,Assocham said.
Of the total investment proposals,the highest amount has gone into electricity (35.9%),followed by manufacturing (25.3%),services (21.8%),real estate (11.8%),irrigation (3.1%) and mining (2.1%),the industry body said.
Assam attracted lowest investment proposals Rs 58,179 crore – albeit with highest project implementation rate – 83.7 per cent,the report said.
“Investment in the primary sector,represented by irrigation,was the highest in Andhra Pradesh,” Rawat said.
Of the total proposals worth Rs 12.09 lakh crore in irrigation,AP accounted for 11.6 per cent of it,he said.
For real estate,Haryana was the most-favoured destination as it attracted 49.7 per cent of the total investments proposals in the sector.