Karnataka ranked third in attracting investments in manufacturing

State ranks 3rd in total investments attracted by manufacturing sector across India

 Karnataka has been ranked third in terms of attracting investments in the manufacturing sector behind Maharashtra and Odisha, which are ranked in the top two ranks respectively, a study said.

According to a study by industry body Assocham titled ‘Manufacturing Excellence and Emergence in India: The state level analysis’, the southern IT hub has the best manufacturing process ratio of 2.63 with maximum value of goods being converted into finished goods valuing over Rs 2,000 crore.

Manufacturing process ratio determines how much of the total value of the goods converted into finished goods.

The study was done during the year 2015-16, Assocham said.

Of the total live investments attracted by states across India worth Rs 169 lakh crore as of FY16, Karnataka accounted for 6.3% with Rs 10.7 lakh crore worth of investments attracted by the state in different sectors.

In manufacturing sector, while states across India attracted investments worth Rs 34 lakh crore as of FY16, Karnataka accounted for over 10% share with investments worth Rs 3.4 lakh crore with only Maharashtra (12.8%) and Odisha (12.7%) being ahead of it.

Manufacturing sector also accounted for about 32% share in total investments attracted by Karnataka, during the year. Within manufacturing, the state attracted maximum investments in metal and metal products which accounted for over 68% share followed by construction materials (10%), chemical and chemical products (8%), machinery (4%), food and agro (3.5%) and transport equipment (3.4%).

Karnataka has also left behind all the states across India in terms of manufacturing excellence, the study said.