'Odisha top destination for FDI in India'

Written by Agencies | Bhubaneswar | Updated: Aug 28 2012, 02:28am hrs
OrissaWith investment proposals worth Rs 49,527 cr, Orissa beat the rest of India hollow. (AP)
Mineral rich Odisha has emerged as the most favoured destination for overseas investors with investment proposals worth Rs 49,527 crore followed by Andhra Pradesh and Gujarat during 2011-12, according to apex industry body ASSOCHAM.

Though barely 17 FDI proposals were filed in Odisha, the state garnered lion's share worth about Rs 49,527 crore in the total FDI proposed across India, according to a state-wise analysis of the proposed FDI and the number of FDI proposals filed in India during 2011-12 carried out by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

While Odisha's share in total foreign direct investment (FDI) was 21 per cent, AP attracted 19 per cent (Rs 33,936 crore for 70 proposals) followed by Gujarat 11 per cent (Rs 20,258 crore for 131 proposals).

A total of 763 FDI proposals worth over Rs 1.78 lakh crore were filed across various states in India during the aforesaid period, said D S Rawat, national secretary general of ASSOCHAM while releasing the findings of the analysis.

Services, telecommunications, construction, computers (software and hardware), real estate and housing, chemicals, drugs and pharmaceuticals, power, automobiles and metallurgical industries are certain sectors attracting highest FDI inflows across India, said Rawat.

Chattisgarh and Karnataka ranked fourth and fifth of the top five investment destinations from the foreign investors' point of view and got FDI proposals worth over Rs 20,000 crore and 14,000 crore respectively.

Maharashtra got the highest number of FDI proposals of 144 but the state ranked sixth with proposed FDI worth over Rs 12,000 crore.

Of the top 20 states, West Bengal ranked 14th, above Bihar, Uttarakhand, Jharkhand, Jammu and Kashmir, Assam and Kerala and managed 24 FDI proposals worth a meagre Rs 1,243 crore, the ASSOCHAM study said.

Rajasthan, Tamil Nadu, Himachal Pradesh, Uttar Pradesh, Haryana, Madhya Pradesh and Punjab stayed ahead of West Bengal and attracted FDI proposals worth between Rs 8,600 crore and Rs 1,200 crore during 2011-12 fiscal.

India is competing for foreign investments with other emerging economies and thus FDI is imperative for India as it has transformed the quality, productivity and production in areas it has been allowed and can supplement domestic efforts significantly, according to the ASSOCHAM study.

Finding bureaucratic delays and plethora of governmental approvals and clearances involving various ministries, the study suggested improvements.

The apex industry body also recommended a mechanism to facilitate a consultation between the centre and state governments before rolling out a policy to ensure that the decision once taken does not get affected.

"Restrictions on sector caps and entry route to sectors other than those of national importance must be liberalised further and constant reviewing of policies must be done," said Rawat.

"Besides, the government must ensure consistency of policy so as to perk up the business and investor confidence," he said.

The study said the government must recognize that good regulations and efficient processes are key catalysts for FDI.

Accessible and reliable information and 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 overseas investors' confidence and foster more investments in India.

UP got FDI proposals worth Rs 1,700 cr in 2011-12; ranked 10th

Lucknow: With less than even one per cent share in the total foreign direct investment (FDI) proposed in 2011-12, Uttar Pradesh has been ranked as the 10th favourite investment destination for overseas investors across India, apex industry body ASSOCHAM said today.

About 37 FDI proposals worth over Rs 1,700 crore were filed in Uttar Pradesh, a press release quoting a state-wise analysis of the proposed FDI and the number of FDI proposals filed in India during 2011-12 carried out by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Elaborating the reasons for poor FDI in Uttar Pradesh , National general secretary of ASSOCHAM, D S Rawat said that it is because the state has failed to project itself as a "promising" market.

A majority of overseas FDI is coming for projects concerning natural resources and as far as UP is concerned, it has not been able to properly utilise its natural resources, he said.

Rawat said the state was pursuing policies which were not conducive to the present times and was still following trends prevalent in the 1990s.

Alongwith natural resources, the state should properly utilise its real estate and permit FDI in employment generation, besides infrastructure development, he added.

With over 27 per cent share in the total foreign direct investment (FDI) proposed in 2011-12, Odisha has emerged as the most favorite investment destination for overseas investors across India.

Odisha is followed by Andhra Pradesh that attracted FDI proposals worth about Rs 33,936 crore.

Gujarat got the second highest number of 131 FDI proposals but was ranked third with a share of over 11 per cent attracting proposed investments worth Rs 20,258 crore, highlights the ASSOCHAM study.