From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Apr 12: Private sector accounted for over 59 per cent of the total investments worth over Rs 10 lakh crore attracted by Karnataka as of December 2012, according to apex industry body, The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The Assocham, which conducted a sector specific  analysis entitled, ‘Composition of Outstanding Private Investments Across States,’ said of the over 8 % in the total investment commitments made by the domestic and foreign private sources across India, Karnataka attracted private sector investments worth over Rs 6 lakh crore as of December 2012.

“With investment proposals worth over Rs 75 lakh crore, the private sector accounts for over 62 per cent of the total outstanding investments attracted by India worth about Rs 122 lakh crore during the aforesaid period,” said D S Rawat, national secretary general of ASSOCHAM while releasing the analysis.

“Inflow of private investments is influenced by bureaucratic efficiency, infrastructure facilities and ease of land acquisition and is decided by attractiveness of investment opportunities as they are mostly driven by profitability considerations,” said Rawat.

“Besides, tax concessions, product market conditions and exit policies are certain effective tools of private investment attraction,” he said.

While the private sector accounts for about 85 per cent of the total outstanding investments worth about Rs 7 lakh crore attracted by Jharkhand, the states of Haryana, Gujarat and Chhattisgarh are other top states where private sector accounts for a share of about 70 % and above in total investments attracted by the state.

Acquiring a share of about 14 % in the total outstanding private sector investments worth over Rs 75 lakh crore (including both domestic and foreign private sources), Gujarat has ranked on top for attracting maximum private investments across India as of December 2012.

Of the total outstanding investments attracted by the state of Gujarat worth over Rs 14 lakh crore, the foreign and domestic private sources account for over Rs 10 lakh crore thereby registering a share of over 71 %, the Assocham analysis said.

With a share of about 12 % in the total private sector investments attracted by India, Orissa ranks second with private investment commitments worth over Rs 8 lakh crore. Besides, private sources account for over 75 % of the total investments worth over Rs 11 lakh crore attracted by the state.

Andhra Pradesh closely followed by Maharashtra and Karnataka rank amid top five states attracting maximum investment proposals from private sources, the Assocham said.

With a share of about 9.4 % and 9.3 % , Andhra Pradesh and Maharashtra both have attracted private investments worth over Rs 7 lakh crore respectively, while, Karnataka attracted private investments worth over Rs 6 lakh crore.

Himachal Pradesh, Jammu and Kashmir, Uttarakhand and Assam account for a share of less than 1 % in the total private investment commitments attracted by India, as per the Assocham analysis.