Uttar Pradesh has been ranked ahead of Bihar and Uttarakhand as the most favourite Foreign Direct Investment (FDI) destination in the country.
While UP stood 10th in total FDI proposals during 2011-12, Bihar and Uttarakhand ranked 15th and 16th respectively.
About 37 FDI proposals worth Rs 1,700 crore were filed in UP during the period, according to an analysis by the Associated Chambers of Commerce and Industry of India (Assocham). UP’s share stood at 0.97 per cent. Bihar had received seven FDI proposals worth Rs 992 crore during 2011-12, putting its share at 0.50 per cent.
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Odisha emerged as the most favourite investment destination with over 27 per cent share in FDI proposals. Although, barely 17 FDI proposals were filed in Odisha, the state garnered lion’s share worth about Rs 49,527 crore in proposed FDI.
“A total of 763 FDI proposals worth over Rs 1.78 lakh crore were filed across different states in India during the aforesaid period,” said D S Rawat, national secretary general, Assocham, while releasing the findings.
Bureaucratic delays and plethora of approvals/clearances must be fastened to increase the absorption of FDI, suggested the study.
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Services, telecom, construction, computers (software and hardware), real estate and housing, chemicals, drugs and pharmaceuticals, power, automobiles and metallurgical industries are sectors attracting highest FDI inflows across India.
Attracting FDI proposals worth Rs 33,936 crore, Andhra Pradesh ranked second with a share of 19 per cent, as about 70 proposals were filed by foreign investors.
Gujarat got the second highest number of 131 FDI proposals and it 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 with FDI proposals worth Rs 20,000 crore and Rs 14,000 crore respectively.
Although Maharashtra got the highest number of FDI proposals at 144, it ranked sixth with proposed FDI worth Rs 12,000 crore.
West Bengal ranked 14th only above states like Bihar, Uttarakhand, Jharkhand, Jammu and Kashmir, Assam and Kerala and managed 24 FDI proposals worth a meagre Rs 1,243 crore.
Assocham recommended the government to devise a mechanism to facilitate a consultation between the Centre and states before rolling out a policy to ensure smooth implementation.
“Restrictions on sector caps and entry route to sectors other than those of national importance must be liberalised and constant reviewing of policies must be done,” Rawat said.