By IANS,
New Delhi : With easy access to funds, rising domestic demand and a revival of industrial production, planned investment of corporate India soared 52 percent in the second quarter over that registered in the previous three months, says a study by an industry lobby.
The study by Associated Chambers of Commerce and Industry (Assocham) said investment announcements in the quarter ended Sep 30 totaled Rs.440,353 crore, compared to Rs.289,704 crore in the first quarter.
“To sustain this rise in investment activity and stem the fall in credit growth, the government must ensure continuity of stimulus measures along with accommodative monetary policy stance till it takes shape of a full-fledged economic recovery,” said Assocham president Swati Piramal in a statement.
“Led by the flurry of IPOs and QIPs in the domestic financial market along with the easy monetary policy stance by the RBI, the liquidity position of India Inc improved significantly during the last six months,” the study said.
According to Assocham, Andhra Pradesh emerged the favourite investment destination attracting proposals, mainly in oil and natural gas sector, worth Rs. 63,708 crore during the first half this fiscal.
Gujarat followed, attracting investment plans worth Rs.38,771.3, while Maharashtra (Rs.32,414 crore), was ranked third.
The power sector attracted investment proposals to the tune of Rs.228,637 crore across the country during the first half of the fiscal, Assocham said, noting that funds for the expansion plans were raised from the primary market.