Gujarat ranks third in proposed FDI
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- Business & Industry
- Monday, 27 August 2012 19:54
- Published on Monday, 27 August 2012 19:54
- Hits: 1566
Gujarat Global News Network, Ahmedabad
Gujarat has been ranked third in the list of most favourite investment destination for overseas investors. Odisha is the most favourite among investors and Andhra Pradesh ranked second according to an ASSOCHAM study titled “India’s Experience with FDI: Role of a Game Changer.”
In total foreign direct investment proposed in 2011-12 Gujarat’s share is 11 percent while that of Odisha is 27 and Andhra Pradesh is 19 percent. Though Gujarat has received 131 proposals Odisha ranks the list with share worth of Rs.49,527 crore in the total FDI proposed across India. Gujarat attracted proposed investment worth Rs. 20,258 crore while Andhra Pradesh got proposals worth Rs. 33,936 crore.
A total of 763 FDI proposals worth over Rs. 1.78 lakh crore were filed across various states in the country, Ms. Bhagyesh Soneji, chairman ASSOCHAM Gujarat. She said that sectors like services, telecommunications, construction, drugs and pharmaceuticals, computers, chemicals, power, automobiles and metallurgical industries attract FDI inflow across the country.
Chattisgarh and Karnataka ranked fourth and fifth of the top five investment destinations from the foreign investors’ point of view and got FDI proposals worth over Rs 20,000 crore and 14,000 crore respectively.
Maharashtra though got the highest number of FDI proposals of 144 but the state ranked sixth with proposed FDI worth over Rs 12,000 crore.
Of the top twenty states, West Bengal ranked 14th only above states like Bihar, Uttarakhand, Jharkhand, Jammu and Kashmir, Assam and Kerala and managed 24 FDI proposals worth a meager Rs 1,243 crore, according to the ASSOCHAM study.
Rajasthan, Tamil Nadu, Himachal Pradesh, Uttar Pradesh, Haryana, Madhya Pradesh and Punjab stayed ahead of West Bengal and attracted FDI proposals worth between Rs 8,600 crore and Rs 1,200 crore during the FY’ 11-12.
India is competing for foreign investments with other emerging economies and thus FDI is imperative for India considering that it has completely transformed the quality, productivity and production in areas it has been allowed and can supplement domestic efforts significantly, according to study. Bureaucratic delays and process vis-à-vis plethora of governmental approvals and clearances involving various ministries must be fastened to increase the absorption of FDI in India.
ASSOCHAM has also recommended the government to devise a mechanism to facilitate a consultation between the centre and state governments before rolling out a policy to ensure that the decision once taken does not get affected.
“Restrictions on sector caps and entry route to sectors other than those of national importance must be liberalized further and constant reviewing of policies must be done,” said Mr D.S. Rawat, national secretary general of ASSOCHAM.
“Besides, the government must ensure consistency of policy so as to perk up the business and investor confidence,” said Mr Rawat.
Government must recognize that good regulations and efficient processes are key catalysts for FDI. Accessible and reliable information and efficient and predictable actions by public institutions help create a business environment conducive to investment.
ASSOCHAM has also called for a time-bound, non-discretionary, simplified and less number of procedures and approvals to help uplift the overseas investors’ confidence and foster more investments in India.
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