With a share of over 8%, Andhra Pradesh (AP) ranks fourth in the total outstanding private sector investments (including both domestic and foreign private sectors) across India as of June 2012, apex industry body The Associated Chambers of Commerce and Industry of India (Assocham) stated on Friday.
Gujarat (12.5%), Odisha (10.7%) and Maharashtra (8.9%) are the states that are ahead of AP in this regard, according to a sector specific analysis titled ‘Composition of Outstanding Investments Across States,’ carried out by Assocham.
Of the total outstanding investments in AP worth over Rs 12.3 lakh crore, private sector accounts for over Rs 6.9 lakh crore thereby registering a share of over 56% in the overall investments across the state.
As per Assocham analysis, with a share of over Rs 82.9 lakh crore, the private sector accounts for over 59% of the total outstanding investments across India worth over Rs 140 lakh crore as of June 2012.
Private sector investments account for a whopping 86.6% in the total outstanding investments worth over Rs 4.5 lakh crore in Haryana which has a share of about 4.8% in the total private sector investments made across India.
“Flow of the private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations,” Assocham Southern Region Council chairperson, Ravindra Sannareddy, stated in a press release.
“Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influence the flow of private investments,” he said adding that tax concessions, product market conditions and exit policies were effective tools of private investment attraction.
However, Assocham analysis points out that the share of private investments in the total live investments across Maharashtra, AP and Karnataka was less than the all-India average of over 59%, points out the Assocham analysis.
Kerala, Himachal Pradesh, Jammu and Kashmir, Uttarakhand and Assam have the least share in India’s total private sector investments which is even less than 1%.