Economy

At 12%, Gujarat tops private investment list: Assocham

Our Bureau Mumbai | Updated on October 26, 2012

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A panoramic view of Reliance Petroleum's refinery complex at Jamnagar in Gujarat.

Gujarat has topped the list of States with the highest share of outstanding private sector investments (including both domestic and foreign private sectors) across India as of June 2012, according to an Assocham study.

The State garnered an investment of Rs 10.34 lakh crore, accounting for 12.5 per cent of the total outstanding private investment of Rs 82 lakh crore.

Gujarat was followed by Odisha (10.7 per cent) and Maharashtra (8.9 per cent) of private investment.

Trounces public sector

Odisha attracted an investment of over Rs 8.8 lakh crore and Maharashtra bagged Rs 7.35 lakh crore. The figures were provided in a sector-specific analysis titled ‘Composition of Outstanding Investments Across States’.

Besides, with a share of over Rs 82.9 lakh crore, the private sector accounts for over 59 per cent of total outstanding investments across India worth over Rs 140 lakh crore. Private sector investments account for a whopping 86.6 per cent in the total outstanding investments worth over Rs 4.5 lakh crore in Haryana, which has a share of about 4.8 per cent in the total private sector investments made across India.

“Flow of private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations,” said D.S Rawat, National Secretary General of Assocham.

Efficiency is key

“Bureaucratic efficiency, infrastructure facilities and ease of land acquisition influence the flow of private investments.

“Besides, tax concessions, product market conditions and exit policies are effective tools of private investment attraction,” he said.

The private sector accounts for almost 75 per cent share in the total outstanding investments worth over Rs 11.8 lakh crore across the State.

> suresh.iyengar@thehindu.co.in

Published on October 26, 2012

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