Karnataka attracted 7.33 lakh crore worth investment projects: ASSOCHAM

Releasing ASSOCHAM's assessment of the state's growth performance, D S Rawat, chamber Secretary General said 60 per cent of investments announced were yet to be implemented due to various reasons, including global recession and slowdown of the Indian economy.

He said Karnataka got 7.1 per cent of the total investment announced by both the government and private sectors in India as on March 2010, ranking fifth among states. Gujarat, Tamil Nadu, Maharashtra and Andhra Pradesh ranked ahead.

Karnataka attracted 1346 live investments involving Rs 7.3 Lakh crore of the total of Rs 104.9 lakh crore all over India. Two-thirds of total investments announced in Karnataka were by private sector and government sources,the remaining one third.

The manufacturing sector got a major share (42.5 per cent) in total investment followed by electricity (22.3 per cent) services (16.2 per cent) and real estate (13.2 per cent).
The sector's share in total investments experienced the maximum growth of 15.2 per cent between March 2009 and March 2010. Of the total investment, 42.5 per cent was invested in the sector in 2009-10. Mining accounted for the least investment in 2009-10 with 1.7 per cent of total investment.

Growth in investment in irrigation experienced a deceleration of 0.8 per cent, compared to 2008-09.

Though real estate exhibited a year-on-year rise of 0.3 per cent between 2009-10, it saw the greatest decline of 6.5 per cent in its share in total investment between 2008-09 and 2009-10 compared to other sectors.

The number of projects completed in 2009-10 were greater than in 2008-09.
As per SWOT analysis of the state's agriculture sector, there was room for development of agro industries. however the sector has seen a decline in popularity among rural people.

In industry there was room for diversification of industrial base, but it was facing competition from other states.In the services sector, emerging IT hubs in the vicinity were acting as a threat, Rawat said.