The Hindu Business Line : States with higher GDP attracting FDI: Assocham

FOREIGN investors prefer to go to States that have a robust gross domestic product (GDP) income and a larger number of higher educational institutes, finds an Associated Chambers of Commerce and Industry of India (Assocham) Eco Pulse Study.

The level of GDP and foreign direct investment (FDI) has a common link with higher educational institutions in particular States. Of the top 10 States in terms of GDP, eight also figured in the list of States having the maximum number of higher educational institutions. These are the same eight States that attracted the maximum FDI. Maharashtra emerged on the top in all the parameters with Rs 1,87,386 crore as its GDP for the year 2003-04. It received maximum FDI approvals, amounting to Rs 48,660.18 crore and has the maximum number of higher educational institutions at 1,733. Uttar Pradesh comes next in terms of contributing GDP at Rs 1,11,830 crore, thanks to its agricultural produce. West Bengal comes third with Rs 1,05,806 crore of the domestic output, followed by Gujarat with Rs 1,03,951 crore, adds the study. The two States that were exceptions to the trend were Rajasthan and Delhi. Rajasthan, which occupies the eighth position in terms of GDP at Rs 64,781 crore, doesn't figure in either of the lists. The State occupies the 12th spot by attracting FDI of Rs 3004.72 crore and is home to 410 professional institutes.

While Delhi is second only to Maharashtra in getting FDI approvals of Rs 33,688 crore, it is 10th in terms of contributing GDP, which stood at Rs 47,813 crore, and occupies the 18th position in terms of its 107 general and professional education institutes.

The western region is the most industrialised, with Goa, Gujarat, Maharashtra, Madhya Pradesh and Chhattisgarh contributing the maximum to the national produce at Rs 3,75,660 crore.

The region is again a topper in terms of receiving FDI and it had attracted Rs 77,932.35 crore of cumulative FDI approvals till August 2002.

However, in terms of the number of educational institutes, the southern region, with Andhra Pradesh, Tamil Nadu, Karnataka and Kerala, has taken the top spot with 3,839 institutes. The Western Region is second with 3,127 institutes.

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