With about nine per cent share in total investments attracted by the manufacturing sector in the country as on March 31, 2013, Gujarat ranked fifth among other states.
This, according to the trade body, Associated Chambers of Commerce and Industry of India (Assocham), indicated the state’s emergence as a prominent manufacturing investment hub.
Out of the total outstanding investments worth over Rs 122 lakh crore attracted by various sectors across the country as of March 2013, manufacturing accounted for a about 25 per cent share with over Rs 30 lakh crore worth of investments.
“Odisha accounted for the highest share of over 18 per cent in total investments attracted by the manufacturing sector across India as of March 2013 followed by Karnataka (over 14 per cent share), Jharkhand (over 13 per cent share), Andhra Pradesh (about 10 per cent share) and Gujarat (over nine per cent share) amid top five states with maximum share in investments attracted by manufacturing sector,” said D.S. Rawat, national secretary general, Assocham.
According to the Assocham study, ‘Investments in Manufacturing Sector', Gujarat accounted for the highest share ranging between 26-33 per cent in key product segments of non-metallic mineral products, textiles and food & beverages during 2004-05 and 2011-12.
“Besides, Gujarat also acquired the second highest share of about 25 per cent and over 18 per cent in investments attracted by transport equipment and chemicals industry respectively during the aforesaid period,” the study revealed.
“Considering that manufacturing accounts for about 4/5th of the industrial activity, it is often termed as the engine of growth, besides it is also an effective means of bridging regional disparities,” Rawat said.
Services sector
However, according to Rawat, services sector had outranked manufacturing industry in terms of its contribution to India’s gross domestic product (GDP). “Lack of new investments is a real threat to the survival of manufacturing in India,” he added.
According to the Assocham analysis, sectors such as metals and metal products followed by chemicals industries are dominating the domestic manufacturing sector in terms of investments.