Odisha has emerged as the most favourite destination for overseas investors in the country, says a study conducted by the industry body, Associated Chambers of Commerce and Industry of India (Assocham).
The state pulled 17 FDI proposals in last fiscal totaling to Rs 49,527 crore, garnering the lion’s share of 27.82 per cent of the overall FDI proposals of Rs 1.78 lakh crore received by all states.
“A total of 763 FDI proposals worth over Rs 1.78 lakh crore were filed across various states in India during 2011-12. Services, telecommunications, construction, computers (software and hardware), real estate and housing, chemicals, drugs and pharmaceuticals, power, automobiles and metallurgical industries are certain sectors attracting highest FDI inflows across India,” said Assocham’s national general secretary D S Rawat.
Andhra Pradesh ranked second, attracting FDI proposals worth Rs 33,936 crore with a share of about 19 per cent of the total proposals.
Next is Gujarat, drawing investment proposals of Rs 20,258 crore, grabbing a share of 11 per cent of total FDI investments attracted by the country. Chhattisgarh and Karnataka occupied fourth and fifth slots, garnering FDI proposals of Rs 20,000 crore and Rs 14,000 crore respectively.
Though Maharashtra got the most number of FDI proposals (144), it ranked sixth with proposed investments of Rs 12,000 crore.
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Rajasthan, Tamil Nadu, Himachal Pradesh, Uttar Pradesh, Haryana, Madhya Pradesh and Punjab stayed ahead of West Bengal, attracting FDI proposals worth between Rs 8,600 crore and Rs 1,200 crore during 2011-12.
Of the top 20 states, West Bengal ranked 14th, above states like Bihar, Uttarakhand, Jharkhand, Jammu and Kashmir, Assam and Kerala. The state managed to draw 24 FDI proposals worth a meagre Rs 1,243 crore.
The Assocham study titled ‘India’s Experience with FDI: Role of a Game Changer’, pointed out that India is competing for foreign investments with other emerging economies. “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,” the study quoted.
It emphasized on quickening government approvals and clearances involving various ministries 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 Rawat. “Besides, the government must ensure consistency of policy so as to perk up the business and investor confidence.” Assocham has 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.