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ShareAhmedabad: The turnaround in demand and industrial revival have made India Inc.'s investment plans leap by 52%, and Gujarat has leveraged the circumstances spectacularly, becoming the second most favoured Indian state in attracting domestic corporate investments.
Gujarat's investor-friendly image helped it attract investment plans totalling Rs38,771.3 crore during the first six months of the current fiscal.
The numbers, relating to the September quarter over the past quarter, were revealed by the Assocham Investment Meter report, released recently.
According to the report, Andhra Pradesh emerged as the leading state in attracting domestic corporate investments, while Gujarat beat Maharashtra (third spot) in drawing investments during the first six months of the current fiscal. Maharashtraattracted Rs32,413.5 crore in newly announced projects and
expansion plans.
The Assocham Investment Meter (AIM) study titled, 'Emerging Trends in Corporate Investments', showed that the investment announcements of corporate India during the second quarter of the current fiscal, ending September 2009, amounted to Rs4,40,353.30 crore.
During the first quarter, Rs2,89,703.78 crore in investments were recorded. The sectors that witnessed an upsurge in planned investment rollouts included power, metals & mining, real estate, energy and auto/auto components.
"To sustain this rise in investment activity and to stem the fall in credit growth, the government must ensure continuity of stimulus measures," said Swati Piramal, the Assocham president. "An accommodative monetary policy stance is also necessary till a full-fledged economic recovery [is achieved]."The ample cash position of Indian companies and the rebound in industrial activity contributed to the upswing in the investment announcements, the study said.
