Andhra Pradesh ranked No. 3 in attracting private sector investment to the tune of Rs. 7 lakh crore, constituting 9.4 per cent of the total investments in India, after Gujarat (Rs. 10 lakh crore) and Odisha (Rs. 8 lakh crore), an analysis by Associated Chambers of Commerce and Industry of India (Assocham) said.
Andhra Pradesh is closely followed by Maharashtra and Karnataka in the list of States attracting maximum investment proposals from private sources in India, said the analysis.
As of December, 2012, the private sector in Andhra Pradesh accounted for over 58 per cent of the total outstanding investments worth Rs. 12 lakh crore.
Other top States include Jharkhand, Harayana and Chattisgarh with high levels of private sector investments.
As for the entire country, with proposals worth over Rs. 75 lakh crore, the private sector accounted for over 62 per cent of total investment proposals of about Rs. 122 lakh crore, said D.S. Rawat, Assocham’s national secretary general, in a press release, after releasing the sector-specific analysis report here titled ‘Composition of Outstanding Private Investments Across States’.
He said inflow of private investment into the State was influenced by bureaucratic efficiency, infrastructure and ease of land acquisition.
It was also decided by other factors such as attractiveness of investment opportunities as they were mostly driven by profitability considerations, besides tax concessions given by the respective State governments, product market conditions and exit policies, he added.