Bangalore, Feb 13: Karnataka has emerged as the fifth most lucrative investment destination attracting investment proposals worth Rs.9.85 lakh crore at the end of 2011, industry body ASSOCHAM said today.
Karnataka has clocked a share of about 8.18 per cent in the total live investments worth Rs. 120.34 lakh crore at the end of the year, according to The Associated Chamber of Commerce and Industry of India (ASSOCHAM).
“Out of the 20 industrial states, Gujarat, Maharashtra, Andhra Pradesh, Odisha and Karnataka have clearly emerged as the preferred investment destinations by attracting 53.56 per cent of the total live investments,” said D S Rawat, national secretary general of ASSOCHAM.
Out of the total investment proposals Karnataka attracted 38.9 per cent in manufacturing, 24.6 per cent in services, 15.2 per cent in real estate, 5.6 per cent in irrigation and 1.5 per cent in mining.
Gujarat with 16.28 lakh crore has emerged as the most preferred investment destination followed by Maharashtra Rs.14.14 lakh crore, Andhra Pradesh Rs.12.09 lakh crore, Odisha Rs. 12.09 lakh crore, Karnataka Rs. 9.85 lakh crore and the remaining 15 states attracted total investment proposals worth Rs. 55.89 lakh crore.
The study observed that Tamil Nadu was at sixth position by attracting investment proposals worth Rs. 9.13 lakh crore followed by Jharkhand Rs.7.16 lakh crore investment proposals. The remaining 13 states were West Bengal (Rs. 6.23 lakh crore), Madhya Pradesh (Rs. 5.65 lakh crore), Uttar Pradesh (Rs.5.38 lakh crore), Haryana (Rs. 4.98 lakh crore), Chhattisgarh (Rs. 4.56 lakh crore), Rajasthan (Rs. 2.54 lakh crore), Bihar (Rs. 2.38 lakh crore), Punjab (Rs. 2.16 lakh crore), Kerala (Rs. 2.12 lakh crore), Jammu & Kashmir (Rs. 1.11 lakh crore), Uttarakhand (Rs. 1.07 lakh crore), Himachal Pradesh (Rs. 84,062 crore) and Assam (Rs. 58,179 crore).
The highest amount of investment has gone into electricity (35.9%), manufacturing (25.3%), services (21.8%), real estate (11.8%), irrigation (3.1%) and mining (2.1%). “Investment in the primary sector represented by irrigation has the highest share in Andhra Pradesh,” said Rawat.
“Next are Gujarat, Karnataka, Madhya Pradesh and Maharashtra. As against these states, Chhattisgarh, Jammu and Kashmir, Haryana, Uttarakhand and Assam gave the least priority to investing in irrigation development.”
Mining has got the highest share in live investments in the states of Odisha, Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya Pradesh. As opposed to this trend, mining sector got the least share in total investments in Uttarakhand, Punjab, Haryana, Bihar and Jammu and Kashmir.
Manufacturing is expected to achieve higher growth relatively to other sectors in the states of Odisha,Jharkhand, Gujarat, Karnataka, and West Bengal. Conversely,manufacturing got lower shares in Jammu and Kashmir, Uttarakhand, Himachal Pradesh, Punjab and Assam.
As regards the share of electricity, the sector has got the highest share of investments in the states of Gujarat, Odisha, Maharashtra, Andhra Pradesh and Tamil Nadu. The bottom five states to focus on electricity are Assam, Kerala, Jammu and Kashmir, Himachal Pradesh and Haryana.
Maharashtra, Tamil Nadu, Gujarat, Karnataka and Andhra Pradesh emphasise more on the development of services sector. The states of Chhattisgarh, Himachal Pradesh, Uttarakhand, Jharkhand and Assam have lesser focus on services sector.
Out of the total proposals, Gujarat attracted 39.2 per cent in electricity, 24.2 in manufacturing, 16.2 per cent in services, 14.3 per cent in real estate, 5.2 per cent in irrigation and 0.9 per cent in mining.
Out of the total proposals, Maharashtra attracted 37.1 per cent in services, 31.7 per cent in electricity, 18.7 per cent in real estate, 11 per cent in manufacturing, 1.1 per cent in irrigation and 0.5 per cent in mining.
Andhra Pradesh, of the total proposals, attracted 32.5 per cent in electricity, 21.7 per cent in manufacturing, 19.8 per cent in services, 11.6 per cent in irrigation, 11.6 per cent in real estate and 2.8 per cent in mining.
Odisha, of the total proposals worth Rs 12.09 lakh crore, attracted 44.2 per cent in manufacturing, 40.4 per cent in electricity, 7.4 per cent in services, 6.5 per cent in mining, 0.9 per cent in real estate and 0.6 per cent in irrigation.
For the real estate sector,Haryana was a major destination as it attracted 49.7 per cent of the total investment proposals.
For the electricity sector, Uttarakhand received 75.1 per cent of the total investment of Rs 1.07 lakh crore,followed by Chhattisgarh, 66 per cent of Rs 4.56 lakh crore,Bihar 65.2 per cent of Rs 2.38 lakh crore), Himachal Pradesh 63.2 per cent of Rs 84,062 crore and Madhya Pradesh 59.4 per cent of Rs 5.65 lakh crore.
Odisha emerged second to Jharkhand as far as manufacturing was concerned. While manufacturing has got 63.1 per cent share in total live investments in Jharkhand, the sector has got prominence in Odisha (44.2 per cent share), West Bengal (43.1 per cent share) followed by Karnataka (38.9 per cent share) and Assam (31.9 per cent share).