Karnataka top in domestic investment too

Coming close on heels of the realty survey putting Bangalore on top of the Indian cities for office space demand this year, the premier national trade body, Associated Chambers of Commerce and Industry of India (Assocham) investment meter report 2010 put Karnataka on top in actual domestic investment too, pushing the hitherto buoyant Gujarat to fourth position.

Among the top 20 investment attracting states, Karnataka has come out the most preferred, with the highest share of 9.1% in actual domestic investment during April-September 2010, Assocham investment meter said.

In sum it comes to Rs3,88,578 crore. Economist with Assocham, P Jaggi, said that the year-on-year average and actual investment and year-on-year change showed Karnataka performing best of all.

“Not surprising,” said FICCI Karnataka chairman Sajan Poovayya, “The chamber report April-September is exactly when the global investor meet was held. That drew nearly Rs4 lakh crores of investment intentions, the best ever performance by a Karnataka government. If you take the calendar year probably we may not be that lucky,” Poovayya pointed out.

“It was expected. Ample availability of skilled human resources and minerals has made the state a top investment option as the Global Investors’ Meet (GIM)’s success proved,” said MC Dinesh, chairman, industries committee, FKCCI.

The runner up, however, is the unlikely Uttar Pradesh, with a 4.7% share of total investment for the same period. UP attracted massive investment plans of Rs2,05,189 crore during the same period.

Power and services were prominent among sectors which attracted major share investments. Jharkhand was ranked third. Its rich mineral resources and cheap manpower explained its top rank, said Dileep Modi, president, Assocham.

The Assocham Investment Meter (AIM) for corporate investments  shows that total investment plans of India Inc increased significantly from Rs79,71,464 crore in 2009 to Rs1,00,97,472 crore during the period April-September, 2010.

“The total investment intentions tracked in the AIM reflects encouraging signs of pick up in investments and acceleration in the overall growth rate,” said Modi.

One time preferred destination for India Inc, Gujarat, slipped to fourth place.