Odisha tops in manufacturing sector investment with 17%
Odisha has emerged as the top state in the country with over 17 per cent share in the total live investments worth about Rs 33 lakh crore in the manufacturing sector across India, according to a recent study by Associated Chambers of Commerce and Industry of India (Assocham).
Gujarat has ranked second in terms of share in total investments attracted by manufacturing sector followed by Karnataka (11 per cent), Jharkhand (nine per cent) and Chhattisgarh (seven per cent) noted the study titled 'Impact analysis of delay in investment implementation in manufacturing.'
“Manufacturing sector in India attracted live investments worth about Rs 33 lakh crore i.e. about one-fifth of the total live investments worth over Rs 164 lakh crore attracted by various sectors across India as of September 2015,” highlighted the study prepared by Assocham Economic Research Bureau (AERB).
“Metal and metal products alone accounted for almost half (48 per cent) of the total live investments attracted by manufacturing sector in India followed by chemicals and chemical products (24 per cent), machinery (8 per cent), transport equipment (7 per cent), construction material (7 per cent), food and agro based products (three per cent),” the report said.
In Odisha, metal and metal products account for over 79 per cent share in total investments in the manufacturing sector followed by chemical and chemical products (15 per cent), transport equipment (three per cent), construction material (one per cent).
Projects with about 37 per cent of the total live investments attracted by manufacturing sector remained under implementation as of September 2015 i.e. 1,160 projects with investments worth over Rs 12 lakh crore, it added.
Rajasthan has over 68 per cent manufacturing projects under implementation followed by Haryana (67.5 per cent), Bihar (63 per cent), Assam and Uttar Pradesh (62 per cent).
In Odisha, about 39 per cent manufacturing sector projects have remained under implementation as of September 2015.
“Considering that long delays in projects' implementation hurts investors' sentiment, the government needs to have a strong plan to prioritise speeding up stuck projects' effective implementation by creating a target-oriented roadmap,” Assocham said.
“Even investors should be penalised if projects get delayed due to improper planning, change of ownership, lack of finance, absence of co-ordination with contractors and other related issues,” it added.