Karnataka has emerged on top with the highest share of 27.5% in total outstanding investments attracted by the information technology (IT) sector across India as of December 2013, apex industry body Assocham said on Monday.
"Total outstanding investments lured by Karnataka in the IT sector have increased from about Rs43,300 crore as of December 2009 to more than Rs65,000 crore as of December 2013, thereby clocking a compounded annual growth rate (CAGR) of over 50% during the five-year period," noted an IT sector-specific investment analysis conducted by Assocham.
"IT projects with investments worth more than Rs39,000 crore, ie 60% share in total outstanding investments attracted by the sector in Karnataka remained non-starter as of December 2013, which has more than doubled from 29.6% as of December 2009," said DS Rawat, national secretary general of Assocham.
"Growing at a CAGR of more than 13%, the total outstanding investments attracted by the IT sector amid top 20 states in India increased from about Rs2 lakh crore as of December 2009 to more than Rs 2.36 lakh crore as of December 2013," said Rawat. "More than half of these total investments in IT sector as 58% remained non-starter as of December 2013."
Gujarat has ranked second in terms of share in the total outstanding investments as the state garnered 17 per cent share with investments worth over Rs 39,690 crore, though the state has registered just 2% growth during the course of past five years.