1,421 industrial investment proposals worth Rs 362,805 crore received in 2014 till September
There has been a sharp decline of about 20% year-on-year in total amount of proposed industrial investments comprising industrial entrepreneurs memorandum (IEMs), letter of intent (LOIs) and direct industrial licenses (DILs) received by states across India in various sectors, apex industry body ASSOCHAM said today."India received 1,421 industrial investment proposals worth Rs 362,805 crore in this calendar year till September which had declined significantly from 1,906 proposals worth Rs 451,643 crore in the corresponding period last year," according to analysis of figures from Department of Industrial Policy & Promotion (DIPP) under the Union Ministry of Commerce and Industry conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Interestingly, Chhattisgarh has acquired lion's share of about 45% in the total amount of proposed investments with 24 investment proposals worth Rs 161,836 crore which had increased from Rs 31,067 crore thereby clocking a year-on-year growth rate of over 420%, highlighted the analysis carried out by the ASSOCHAM Economic Research Bureau (AERB).
Maharashtra (8.9%), Gujarat (8.8%), Odisha (5.9%), Karnataka (5.4%) and Andhra Pradesh (5.1%) are other leading states in terms of share.
However, Madhya Pradesh, Odisha and Gujarat have registered significant decline in their share in total investment proposals.
Amid other states that registered significant growth in terms of proposed investments included - Punjab (184%), Karnataka (166%), Himachal Pradesh (108%) and Assam (25%), highlighted the ASSOCHAM analysis.
Services, construction development, telecommunications, computer software and hardware, drugs and pharmaceuticals, automobiles, chemicals (other than fertilizers), power, metallurgical industries, hotel and tourism are amid top 10 sectors attracting foreign direct investments (FDI) into India, further noted the ASSOCHAM analysis.
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While Mauritius, Singapore, United Kingdom, Japan, Netherlands, United States of America, Cyprus, Germany, France and Switzerland are top investing countries in India, it added.
"Considering the growing competition between emerging economies for foreign investments, FDI is highly imperative for India considering that it has completely transformed the quality, productivity and production in sectors it has been allowed and can supplement domestic efforts significantly," said D.S. Rawat, national secretary general of ASSOCHAM while releasing the findings of the chamber's analysis.
"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, besides, the Government must ensure consistency of policy so as to perk up the business and investor confidence," said DS Rawat.
"Besides, bureaucratic delays and process vis-vis plethora of Governmental approvals and clearances involving various ministries must be fastened to increase the absorption of FDI in India," he added.
ASSOCHAM has 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 decision once taken does not get affected.
Government must recognize that good regulations and efficient processes are key catalysts for FDI as accessible and reliable information together with 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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