One-time vibrant north has slipped to the last slot while east, south and west have edged past the region in terms of attracting investments from private players during the first six months of the current year.
According to Assocham Eco Pulse (AEP) study carried during first six months of 2008, out of the total investment announcements made by the private domestic companies, the entire northern region has attracted investments worth Rs 1,23,905 crore as against the eastern region emerging at the top with a figure of Rs 2,23,464 crore, the southern and the western regions getting a share of Rs 1,76,962 crore and Rs 1,74,794 crore respectively.
The study says despite the huge potential, the northern region has lagged behind others. The state governments would have to redesign their investment policies and improve infrastructure to lure back the investors into this region, observed Sajjan Jindal, president, Assocham.
The study says even after liberalisation, the mental attitude of the northern states has not changed in comparison to their counterparts in other states. The northern region has been left behind other regions in building investors?confidence.
As per the AEP analysis, the rising urban population leading to larger concentration of residential areas has contributed to a low share of 11.79 % of the northern region. Among the states in the North India, Haryana and the national capital region (NCR) have attracted the maximum investments announcements worth Rs 50,595 crore and Rs 38,237 crore for the period Jan-June 2008.
Punjab and Uttar Pradesh ranked third and fourth respectively in the northern region with capital outlay worth Rs 19,418 crore and Rs 13,343 crore respectively.
Despite its abundant potential, Uttar Pradesh lacks in adequate infrastructure, effective law and order situation, and problem of bureaucracy, which has restricted the private domestic companies from investing in the state.
Himachal Pradesh, Chandigarh and Uttaranchal have attracted meagre investments worth Rs 1,150 crore, Rs 667 crore and Rs 495 crore respectively for the period Jan-June 2008. The geographical conditions, lesser area for industrial purposes have contributed to the low level of private investments.
Powered by the huge potential in various mineral resources and investor friendly policies, the eastern region of the country saw the maximum capex announcements by the Indian corporate players during the first half of the current calendar year, said Jindal. The southern region of the country with a share of 16.84% has been ranked second with capital outlay worth Rs. 1,76,962 crore.
High on industrialisation scale, the western region of India ranked third in attracting capital outlay plans. Rajasthan has outpaced the leading industrialised state of Maharashtra. The former has attracted capex plans worth Rs 80,776 crore as compared to the investment announcements worth Rs 65,632 crore in the latter.