The flow of private investments is decided by the attractiveness of investment opportunities, says ASSOCHAM
With a share of over 8%, Andhra Pradesh ranks 4th in terms of the highest share in total outstanding private-sector investments, including both domestic and foreign private sectors, across India as of June 2012, apex industry body ASSOCHAM disclosed on Friday.
Gujarat (12.5%), Odisha (10.7%) and Maharashtra (8.9%) are the only states ahead of Andhra Pradesh in this regard.
Of the total outstanding investments in Andhra Pradesh worth over Rs. 12.3 lakh crores, private sector accounts for over Rs. 6.9 lakh crores thereby registering a share of over 56% in overall investments across the state, according to a sector specific analysis titled ?Composition of Outstanding Investments Across States,? carried out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Besides, with a share of over Rs. 82.9 lakh crores, the private sector accounts for over 59% of the total outstanding investments across India worth over Rs. 140 lakh crores as of June 2012, highlights the ASSOCHAM analysis. Private sector investments account for a whopping 86.6% in the total outstanding investments worth over Rs. 4.5 lakh crores in Haryana which has a share of about 4.8% in the total private sector investments made across India.
"The flow of private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations," said Ravindra Sannareddy, chairperson of ASSOCHAM Southern Region Council while releasing the findings of the chamber?s analysis.
"Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influence the flow of private investments," said Sannareddy. "Tax concessions, product market conditions and exit policies are effective tools of private investment attraction."
But interestingly, the share of private investments in the total live investments across Maharashtra, Andhra Pradesh and Karnataka is less than the all-India average of over 59%, points out the ASSOCHAM analysis.
Kerala, Himachal Pradesh, Jammu and Kashmir, Uttarakhand and Assam, at less than 1%, have the least shares in India?s total private sector investments. (INN)