Andhra Pradesh which stood first in total cost of private corporate investment for financial year 2015-16, slipped to third position in 2016-17. Gujarat and Maharashtra are have secured top two positions respectively
RBI’s monthly bulletin for September cited that AP holds only 8.2 percent of aggregate investment compared to 12.3 percent the previous year. It very closely follows Maharashtra which is at 8.6percent. Gujarat’s share shot up to a whooping 22.7percent.
While most of the states occupy major share in Power projects, pharmaceutical and drugs in Telangana were primarily financed by banks.
As per the report, total cost of projects nearly doubled from Rs 91,800 crore in FY16 to Rs 1,82,800 crore in FY17.
RBI is hoping that the investments will improve in the ensuing quarters even though the first quarter quarter saw a drop.
The report stated that the short-term position for new investment in the Indian economy appears to be improving. While the first half of the fiscal year saw investments in construction and power sector, FDI and private placement of debt is thrusting.
