Karnataka accounted for 44.3% of the total investment intentions in the country during the year 2017. The figures from the Union commerce and industry ministry for January to September showed Rs 1,47,625 crore worth of investment proposals had come into the state. That’s out of a total of Rs 3.3 lakh crore for the whole of India.
The Centre maintains a State-wise break-up of ‘investment intentions’ in terms of Industrial Entrepreneur Memoranda filed for de-licensed sectors, Direct Industrial Licenses granted and Letters of Intent issued. This is in addition to coordinating efforts to rank states on implementation of business reforms as part of the ‘cooperative and competitive federalism’ approach.
State Large and Medium Industries Minister RV Deshpande was indeed proud of the achievement and the title it won against Gujarat who followed way behind with an amount worth of Rs 65,741 crore. Even during the year of 2016, Karnataka was in the Number 1 position, accounting for 37% of investment intentions. In 2015, this was 10%, and the state was behind Gujarat, Chhattisgarh and Maharashtra.
Thanking investors and entrepreneurs who had once again held trust in Karnataka, Deshpande said the State achieved the top spot in the country as the most striking investment destination as per the DIPP’s SIA Index up to September 2017, with investment proposals worth Rs 1,47,625 crore, which is 44.43% of the total investment proposals in the country.
Industries Minister, Deshpande, affirmed that Karnataka is an attractive investment destination taking into consideration the rich heritage and culture it has carried through for generations. He also gave a huge amount of appreciation and credit to the IT sector which played an equal role along with the party in bringing Karnataka to this position.
Industry ministry officials said the IT sector accounted for the major share of investment proposals, followed by the energy sector, R&D, engineering and tourism. Among major projects approved in the past few months were Oracle’s special economic zone (SEZ) with an investment of Rs 2,348 crore, and L&T Construction Equipment’s investment of Rs 2,080 crore to set up two IT/ITeS SEZ projects.
One reason for the increase in proposed investments in the country is the growth in the number of projects proposed. Companies aren’t hesitant anymore, for everyone’s joined the race against time to grow and succeed. What’s proved to be even more encouraging is that the number of employment opportunities have also gone up simultaneously from 4.5 lakh to 5.05 lakh, and now a further of 6 lakh in the past four years. The states have also increased their competition levels individually by stepping up the game. Each state aims and focuses on being part of the Top Seven or Number one.
The pick-up of the investment proposals was accompanied by a reshuffle among the leading states which lead them in attracting the huge investments. The biggest gainer was Karnataka, where the size of proposed investments went up almost five fold from Rs 31,668 crore in 2015 to an astounding Rs 1,54,173 crore in 2016 which raised its share in the total investment proposals from 5.3% to 12.5% and pushed up its ranking from fourth to the first position.