By IANS,
Bangalore: Karnataka lagged behind Odisha, Andhra Pradesh, Gujarat and Chhattisgarh in attracting foreign direct investment (FDI) during fiscal 2011-12, accounting for mere eight percent of the total amount, an Associated Chambers of Commerce and Industry (Assocham) study said Tuesday.
“Karnataka attracted 48 FDI proposals worth Rs.14,000 crore, while Odisha emerged as the most favourite destination for overseas investors, grabbing Rs.49,527 crore for 17 proposals and accounted for 27 percent,” Assocham southern regional council chairman Ravi Sannareddy said in a statement here.
India attracted 763 FDI proposals worth Rs.1.8 trillion (1.78 lakh crore) during the fiscal under review (FY 2012).
With 70 proposals valued at Rs.33,936 crore, Andhra Pradesh stood second accounting for 19 percent share, followed by Gujarat with 131 proposals worth Rs.20,258 crore (11 percent) and Chattisgarh with proposals worth Rs.20,000 crore.
Maharashtra, however, was behind Karnataka in the sixth position as it could attract a mere Rs.12,000 crore for 144 proposals.
“Services, telecom, construction, computers (software and hardware), real estate and housing, chemicals, drugs and pharmaceuticals, power, automobiles and metallurgical industries are some of the sectors attracting highest FDI inflows,” Sannareddy said, citing the apex industry body report.
Of the top 20 states, West Bengal ranked 14th and above states like Bihar, Uttarakhand, Jharkhand, Jammu and Kashmir, Assam and Kerala, with 24 proposals worth a meagre Rs.1,243 crore.
Rajasthan, Tamil Nadu, Himachal Pradesh, Uttar Pradesh, Haryana, Madhya Pradesh and Punjab were, however, ahead of West Bengal and attracted proposals worth between Rs.8,600 crore and Rs.1,200 crore.
“Though we are competing for overseas investments with other emerging economies, FDI is imperative for transforming the quality, productivity and production in diverse areas,” the study titled “India’s experience with FDI: Role of a Game Changer” pointed out.
For making the country more attractive for FDI, the apex industry body advocated speedy approvals and clearances involving different ministries.
“We have recommended to the government to devise a mechanism for consultations between the centre and state governments before formulating a policy to ensure that decisions are not reversed,” Sannareddy noted.
Commenting on the findings, Assocham secretary general D.S. Rawat said curbs on sectorwise caps and entry route to sectors other than those of national importance should be liberalised and policies reviewed regularly for making India the most preferred overseas investment destination.
“The government must ensure consistency of policy so as to perk up business and investor confidence, as good regulations and efficient processes are key catalysts for FDI,” Rawat observed.