A glance at the number of "investment intentions" shows that the number of investment proposals (comprising of Industrial Entrepreneurs Memorandum or IEMs and Letter of Intent or LOIs) received by Gujarat government in 2013 have dipped by 35 percent when compared to the figures in 2011.
According to the figures from the Department of Industry Policy & Promotion (DIPP) under the Union Ministry of Commerce and Industry, Gujarat received a total of 544 investment proposals worth Rs 1.42 lakh crore during the calender year 2011 when the state played host to the fifth edition of VGGIS. However, thereafter there has been a steady decline both in the number and quantum of investments.
For instance, in the year 2012, the number of proposals dipped to 472 (worth Rs 1.26 lakh crore) and by the time the state hosted the sixth edition of VGGIs in the year 2013, the numbers had fallen to 354 proposals worth only a little over Rs 94000 crore.
The figures are not too encouraging for the year 2014 either, when a new chief minister is at the helm of affairs in Gujarat. Between January and July 2014 (period of seven months), the state has attracted 205 investment proposals worth Rs 21,900 crore. When compared to the same seven months in 2013, Gujarat had attracted 223 proposals worth over Rs 61,800 crore.
When contacted, officials from the Gujarat Industries Commissionerate could not attribute any reason for the dipping trend. "We need more time to analyse and react to these figures," stated a senior official from the industries department of the state government.
Among the important companies who have filed their IEMs in July 2014 include the Indian subsidiary of Japanese firm MA Extrusion India Pvt Ltd which is the first company to start work at the newly built Japanese industrial park at Vithalapur in Ahmedabad district.
The others who had inked IEMs in July include Larsen & Tubro Ltd for manufacturing piping spools at Surat, Ramoji Wafer & Namkeen Pvt Ltd for manufacturing snacks at Surat and AP Clutches India Pvt Ltd for clutches in Ahmedabad. Other IEMs include those by Lupin Ltd, Gajanand Spintex India Pvt Ltd, Benchmark Papers Pvt Ltd, Shree Giriraj Cotspin Pvt Ltd, Merino Industries Ltd and others.
Meanwhile, when the national scenario is taken into consideration, Gujarat is currently sitting pretty at the top of the list of states in 2014. Maharashtra which had topped 2013 with 452 investment proposals in 2013, is currently trailing in the second place with 171 proposals worth Rs 28,700 crore.