For the third year in a row, Karnataka is set to top the list of States attracting potential investments.
Till August, the State garnered a potential investment of ₹79,866 crore, which is nearly 60% more than Gujarat that received proposals for investment of ₹51,586 crore in the same period, according to investment intention data (Industrial Entrepreneurs Memorandum) from the Centre’s Department of Industrial Policy and Promotion. However, as past data has showed, realisation of these investments needs a major uptick in the State.
Officials said the figures represent the continued rise of the State in attracting investments. In 2013, it was ranked 11 with just ₹10,050 crore proposed investments in the whole year. By 2015, it ranked 4th. However, it was in 2016 and 2017 that Karnataka leap-frogged to the top of the list, becoming the only State to have received more than ₹1.5 lakh crore investments annually. “This calender year included around two months of election processes, which saw a slight slow-down of investments. However, we still have a few months left and we are reasonably confident of matching the investments we had seen last year,” said Gaurav Gupta, Principal Secretary, Commerce and Industries, adding that it was difficult to predict investments considering multiple, complex macro-economics factors such as market sentiments and bank lending.
While investment intentions continue to shoot up, data also shows that realisation of investment is lagging. Though the State had more than ₹3 lakh crore investment in 2016 and 2017, the realisation is just ₹11,617 crore, or less than 5%. This year, nearly ₹4,723 crore worth of investments have been realised.
However, Mr. Gupta said processes had been strengthened to enable realisation of these IEMs. “Every 15 days, there is a review of the projects so that the government can help in any way to see these investments translate on the ground. Things are bound to get better,” he said. The eco-system, particular when it comes to technology and innovation, remained strong in the State and this sees many tech-oriented investment being routed to Karnataka, he added.
Minister for Commerce and Industry K.J. George said there was a continuing effort to promote ease of business in the State, while the State government was open to new investments.
