Daijiworld Media Network - Bengaluru (SHP)
Bengaluru, Jul 19: Investors have chosen states of Maharashtra and Odisha over Karnataka for investment purposes. The drop was observed from the beginning of the year 2019, where the first five months only gathered investments of Rs 11,219 crore , an astounding 85.1% dip year-on-year.
The Department of Industrial Policy and Promotion (DIPP) in its data stated that in the previous year, Karnataka witnessed investment proposals worth Rs 75,435 crore and was in close competition for the top slot with Gujarat which received a massive of Rs 97,070 crore worth investments up until now, as compared to its Rs 23,543 crore it received during the initial months of 2018.
Karnataka has now been pushed back to an unfortunate fourth spot as investors are opting states of Odisha, Telangana, Andhra Pradesh and Maharashtra over it. Maharashtra has already managed to get over Rs 20,142 crore which puts it on a better spot followed by Odisha.
Several investors have stated that their preferences shifted owing to friendlier business policies in other states apart from Karnataka.
The major reasons for this can be associated to the intense interference by political leaders in the day-to-day operations of the companies. Commerce Ministry has accepted to receiving complaints in this regard. The companies and major firms are pulling away because of the bureaucratic 'red tape' that exists in the state.
The ministry is looking forward to meet the state industry department officials and discuss this alarming issue. It was considered wise to hold the meeting once the political crisis in Karnataka settles.
Defending their stand, the state government blamed the preferences of the investors who are keen on investing in petrochemical industries, and therefore not prioritizing as Karnataka is more of a technology inclined state.
Until May 2019, India has attracted investment worth Rs 1,79,465 crore, a 5.6 per cent dip from the year 2018.