With about 19 per cent share in the total foreign direct investment (FDI) proposed in 2011-12, Andhra Pradesh has emerged as the second most favourite investment destination for overseas investors across India, according to The Associated Chambers of Commerce and Industry of India (Assocham).
Assocham, which carried out a state-wise analysis of the proposed FDI and the number of FDI proposals filed in India during 2011-12, stated about 70 FDI proposals worth about Rs 33,936 crore were filed in Andhra Pradesh.
Though barely 17 FDI proposals were filed in Odisha, the state garnered lion's share worth about Rs 49,527 crore in the total FDI proposed across India. Thus, with over 27 per cent share in the total foreign direct investment (FDI) proposed in 2011-12, Odisha has emerged as the most favourite investment destination for overseas investors across India.
On the other hand, Maharashtra, despite getting the highest number of FDI proposals at 144, stood sixth with proposed FDI worth around Rs 12,000 crore.
“A total of 763 FDI proposals worth over Rs 1.78 lakh crore were filed across various states in India during the aforesaid period,” said Ravi Sannareddy, chairperson of the Assocham Southern Regional Council while releasing the findings of the chamber’s analysis.
Services, telecommunications, construction, computers (software and hardware), real estate and housing, chemicals, drugs and pharmaceuticals, power, automobiles and metallurgical industries are some of the sectors attracting highest FDI inflows across India, he said.
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Gujarat got the second highest number of 131 FDI proposals and the state ranked third with a share of over 11 per cent attracting proposed investment worth Rs 20,258 crore. Chhattisgarh and Karnataka ranked fourth and fifth of the top five investment destinations by securing FDI proposals worth over Rs 20,000 crore and 14,000 crore respectively.
Of the top 20 states, West Bengal ranked 14th only above states like Bihar, Uttarakhand, Jharkhand, Jammu & Kashmir, Assam and Kerala and managed 24 FDI proposals worth a meagre Rs 1,243 crore, according to the 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 FY11-12.
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, suggests the Assocham's study titled 'India’s Experience with FDI: Role of a Game Changer.'
Assocham 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 liberalised further and constant reviewing of policies must be done,” said Assocham secretary general, DS Rawat.