Economic woes: India attracts 75% less investment in FY13

Signifying the tough times economy has been passing through, proposed investments by domestic and foreign entrepreneurs declined by a whopping 75 per cent in FY 2012-13, according to a survey conducted by industry body Assocham.

"India attracted 697 investment proposals through both domestic and foreign entrepreneurs to the tune of over Rs 1.4 lakh crore (Rs 1.4 trillion) as of March 2013.

However, these have declined from a significant level of 2,828 proposals worth Rs 6 lakh crore (Rs 6 trillion) during the corresponding period last year," the survey said.

As per the state-wise analysis of investment intentions of foreign and domestic sources, Maharashtra topped the list attracting maximum share of investment proposals at 20 per cent while Kerala accounted for 10 per cent of the proposals.

"The governments both at the Centre and in states need to work in tandem to attract private investments which would boost economic growth and spur job creation," Assocham president Rajkumar Dhoot

said.

"Maharashtra emerged as most preferred investment destination across India attracting 149 proposals worth over Rs 28,500 crore (Rs 285 billion)," he said.

Amid the top 20 states, Kerala is the only state which witnessed a surge in the proposed investments at 10 per cent with two projects worth over Rs 14,200 crore (Rs 142 billion).

On the other hand, Andhra Pradesh, Haryana, Karnataka, Tamil Nadu and Uttar Pradesh saw a dip in proposed investments.

"Interestingly, the naxal hit Chhattisgarh state ranked second with about 19 per cent share, attracting 21 proposals worth Rs 27,000 crore (Rs 270 billion).

Gujarat ranked third with a share of 14 per cent attracting 106 proposals worth Rs 19,800 crore (Rs 198 billion)," Dhoot said quoting the survey.

Besides, Rajasthan ranked fourth with a share of over 10 per cent with about 41 proposals worth Rs 14,929 crore (Rs 149.29 billion). The survey is based on analysis of proposed investments attracted by various sectors including automobiles, construction, information technology, pharma, power, real estate, services and telecommunications.