Comments
In the first half of the current financial year Tamil Nadu had the highest share of 16 per cent in the investments proposed amounting to ₹0.2 lakh crore.
The State signed 17 MoUs on May 27 out of which 14 were included in the data released by CMIE.
On June 15, Maharashtra government announced signing of 12 MoU for investments worth ₹0.2 lakh, the Care Ratings report said quoting CMIE data.
Natasha Trikha, Research Analyst, CARE Ratings, told BusinessLine that Tamil Nadu had the highest share in terms of investments announced for H1 FY21, but it is to be noted that investment opportunities for the first six months of FY21 have been limited given the lockdown and restrictions in various states. “We will need to monitor how these trends evolve over time. Comparing doing business with investment for this year might not be appropriate under these conditions as policies keep a medium to long term view in mind,” said Trikha.
“Tamil Nadu does it again - #1 in investments in H1 FY2,” said Neeraj Mittal, Managing Director and CEO, Guidance Tamil Nadu, in a tweet. Tamil Nadu continues to move ahead as the favourite destination for investments backed by good governance, connectivity, infrastructure and human capital, he told this paper.
Project announcements
However, Andhra Pradesh had the highest share of 23 per cent in the capex projects announced totalling ₹1.1 lakh crore while in H1 FY21, according to a report by Care Ratings.
According to Care Ratings, the new projects announced for the first half fell sharply by 69 per cent to ₹1.5 lakh crores compared with ₹4.8 lakh crores last year. This was owing to the lack of economic activity due to the pandemic induced lockdown announced nationally in the last week of March 2020. As the enterprises were faced with Covid-19 induced challenges, they focussed on survival. Hence the decline in capex investments was somewhat expected.
The fall in H1 FY21 was driven by an 81 per cent decline in projects announced by the government.
The new capex projects proposed by the government decreased from ₹3.2 lakh crore in H1 FY20 to ₹0.6 lakh crore in H1 FY21. Similarly, investments proposed by the private sector fell by 45 per cent y-o-y to ₹0.9 lakh crore in H1 FY21 in comparison with ₹1.6 lakh crore in the same period last year, the report said.
Commenting on Tamil Nadu achieving the top position, Hari Thiagarajan, Chairman, CII Tamil Nadu, said the State continuously excels in attracting more investments. The continuous efforts of the State government in enabling the business facilitation act and single window clearance system facilitates the investing climate in the State.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.