Undeterred by economic slowdown, the domestic
investment announcements of India Inc. registered a growth of 16 per cent
during calendar year 2009 over 2008 with Gujarat, Orissa and Andhra Pradesh
emerge as frontrunners, according to an analysis of ASSOCHAM Investment Meter
(AIM) Study on Corporate Investments.
As per the annual AIM assessment report for
Corporate Investments across States and Sectors, total investment plans of
India Inc. increased significantly from Rs 13,80,099 crore in 2008 to Rs
15,94,203 crore in 2009; out of which Gujarat, Orissa and Andhra Pradesh carved
out a majority share of 15.4 per cent, 12.6 per cent and 8.1 per cent
respectively.
The intensity of corporate investment activity
during the period of economic downturn has proved the relative resilience of
Indian economy.
“The robustness in corporate investment activity on
the Indian soil shows how competently the economy has managed to weather the
storm of unprecedented global financial crisis” said Mr. D S Rawat, ASSOCHAM
Secretary General
In this context, Mr. Rawat, however points out the
fact that the implementation of these investment projects has been hampered by a
slew of hurdles. These include, land acquisition problems, bureaucratic inertia,
ongoing economic slowdown and depressed expat market conditions. The government
needs to address these issues on priority basis in order to realize the fruits
of these investments.
Among the top investment attracting states, Gujarat
registered the highest share in domestic investment plans during the January to
December period of 2009. The state witnessed Rs. 2,45,352 crore worth of
investment plans. Helped by the investor friendly policies of the state
government which led to a smooth relocation of the Tata Nano project, the state
attracted majority of investment plans in the real estate, power and
infrastructure sectors.
Orissa stood at second position after Gujarat and
recorded investment proposals worth Rs. 2,00,846 crore during the last year. The
availability of rich mineral resources such as coal and iron ore along with
cheap availability of manpower attracted massive investments in Orissa. Steel
and power were among the sectors which attracted maximum investments in the
state.
Successful commencement of gas production from the
D6 block of KG basin helped Andhra Pradesh to rank amongst the top three states
in attracting corporate investors in 2009. The state recorded investment plans
to the tune of Rs. 1,29,157 crore. Energy and the real estate were among the
major sectors that attracted maximum investments.
Karnataka and Maharashtra stood at fourth and fifth
position by attracting investment plans worth Rs. 1,06,092 crore and Rs. 91,824
crore respectively during 2009. Karnataka has cashed in its investor friendly
image by attracting a proposal of setting up a six-million-tonne integrated
steel plant by Arcelor Mittal whereas benefitted by its financial
infrastructure; Maharashtra has also been among the leading investment
destinations in the country.
In terms of sectoral analysis, the ASSOCHAM Study
shows that the power sector was the major investment attracting sector for 2009.
The sector attracted investment plans worth Rs. 4,14,327 crore with a share of
26 per cent in the overall investment plans across the country.
Following the power sector, real estate and energy
sector were amongst the top investment attracting sectors during the year. Real
estate sector witnessed proposed investment plans worth Rs. 2,57,314 crore
whereas energy sector attracted proposed investments to the tune of Rs. 1,98,565
crore.
Other sectors which recorded high flowing corporate
investments during the last year were metals & mining (Rs. 1,59,534 crore),
infrastructure (Rs. 74,210 crore), hospitality (Rs. 43,746 crore), auto/auto
components (Rs. 38,150 crore) and telecom (Rs. 34,461 crore).