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This article was first published 13 years ago

India's most preferred investment destinations

Last updated on: December 22, 2010 12:36 IST

Image: Indian currency notes are stapled to form garland at market in Jammu.
Photographs: Mukesh Gupta/Reuters.
India is set to become a potential goldmine on the back of investment announcements in the 20 major states that surged during April-September (H1) 2010 to Rs 10,097,472 crore (Rs 100,974.72 billion).

The total outflow of the capex is 26.7 per cent higher as compared to the corresponding period of the previous year (2009-10), according to the analysis of Assocham study on the corporate investment pattern.

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Gujarat: Most preferred investment destination in India

Image: India Inc to invest more.
Photographs: Reuters.

1. Gujarat

As per the Assocham Investment Meter (AIM) assessment report for corporate investments across states and sectors, total investment plans of India Inc increased significantly from Rs 7,971,464 crore (Rs 79,714.64 billion) in 2009 to Rs 10,097,472 crore (Rs 100,974.72 billion) during the period of April-September, 2010.

Click NEXT to find which states are the most preferred investment destinations in India...

Gujarat: Most preferred investment destination in India

Image: An employee works inside the newly inaugurated plant for the Tata Nano car at Sanand.
Photographs: Amit Dave/Reuters.

Among the top investment attracting states, Gujarat bagged the highest share of 13.2 per cent in domestic investment plans during the period of April-September, 2010.

The state witnessed Rs 1,330,743 crore (Rs 13,307.43 billion) worth of capex plans, which are 17.3 per cent higher as compared to the total investment realised in the state during the past year.

Also, the state attracted majority of investment plans in the power, manufacturing and services sectors.

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Gujarat: Most preferred investment destination in India

Image: A worker makes gear parts for cranes at a workshop in Mumbai.
Photographs: Danish Siddiqui/Reuters.

2. Maharashtra

Similarly, Maharashtra stood at second position registering a growth of 19.3 per cent (Y-o-Y) and 13.2 per cent share of the total investments made during April-September 2010-11.

The state attracted whopping investments plans of Rs 1,154,197 crore (Rs 11,541.97 billion) during this period. The services and real estate were the prominent among the sectors that attracted majority share of the investments.

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Gujarat: Most preferred investment destination in India

Image: Orissa sees a rise in investment.

3. Orissa

Orissa was ranked third on investment radar with total planned investments at Rs 1,134,716 crore (Rs 11,347.16 billion) during the H1 FY11.

The state recorded a hike of about 20.0 per cent in overall investments over the previous year.

"The total investment intentions tracked in the AIM study reflects encouraging signs of pick up in investments and acceleration in the overall growth rate. The factors such as delay in infrastructure expansion plans, hurdles in legal procedures and political instability have adversely affected the implementation of these investment projects across the states", said D S Rawat, Secretary General, Assocham.

The availability of rich mineral resources such as coal and iron ore along with cheap availability of manpower ensured Orissa's position amongst the top three states in attracting corporate investments.

Gujarat: Most preferred investment destination in India

Image: Bangalore.

4. Karnataka

Karnataka is ranked fourth by attracting investment plans worth Rs 915,060 crore (Rs 9,150.60 billion) during H1 of 2010.

The overall investment contribution in Karnataka during the April-September of FY11 stood at 9.1 per cent.

However, the state has seen a hike of 73.8 per cent in the investments over the same period of the previous fiscal.

The manufacturing accounted as the prominent sector among the other investment attracting sectors in the state were steel, real estate and textiles.

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Gujarat: Most preferred investment destination in India

Image: Hyderabad.

5. Andhra Pradesh

Andhra Pradesh stood at the fifth position with investments to the tune of Rs 866,776 crore (Rs 8,667.76 billion) during in H1 of 2010.

In the current fiscal, during the same period the state's share of total investment was 8.6 per cent, with top sectors being power, manufacturing and agriculture and allied services.

Gujarat: Most preferred investment destination in India

Image: Investments to boost economy.
Photographs: Reuters.
Among the industry sectors, manufacturing and power companies have received the major proportion of the investments.

In terms of sectoral analysis, the Assocham study shows that with increasing energy requirements of the rapidly growing Indian economy, power sector figures out as a nest egg to invest in.

The sector witnessed bulk of the investments of worth Rs 3,643,883 crore (Rs 36,438.83 billion) with a share of 35.4 per cent in the overall investments plans across the country during April-September of current fiscal.

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Gujarat: Most preferred investment destination in India

Image: Manufacturing sector grows.
The manufacturing sector has also been favoured by the industrialists for investment.

The sector registered a growth of 26.3 per cent while attracting the total investments of Rs 2,704,211 crore (Rs 27,042.11 billion) .

Gujarat: Most preferred investment destination in India

Image: Services sector sees more investment.
The services sector emerged as the third priority sector which attracted proposed investments of Rs. 2,162,950 crore, contributing 21.0 per cent in overall investments made in the period of FY'11.

Other sectors which recorded high flowing corporate investments during April-September of 2010-11 are: Real estate attracted Rs 1,172,823 crore (11.4 per cent), mining Rs 308,716 crore (3.0 per cent) and irrigation Rs 301,350 crore (2.9 per cent).