Uttar Pradesh emerged as the 10th most sought after destination for foreign direct investment (FDI) proposals in the country during the last financial year. That is what an analysis by the Associated Chambers of Commerce and Industry of India (Assocham) has revealed. It said the state received 37 FDI proposals worth Rs. 1,700 crore last year. This is less than one percent of the nationwide share.
"Overall, 763 FDI proposals worth over Rs. 1.78 lakh crore were filed in various states during the last fiscal year," said DS Rawat, the national general secretary of Assocham.
Odisha emerged as the top investment destination with FDI proposals worth Rs. 49,527 crore(27% share). Andhra Pradesh was ranked second with proposals worth Rs. 33,936 crore(19% share). With 131 proposals worth Rs. 20,258 crore(11%) Gujarat was third. It was followed by Chattisgarh (Rs. 20,000 crore) and Karnataka (Rs. 14,000 crore). Maharashtra got the highest number of proposals at 144 but was ranked sixth on the basis of its value of Rs. 12,000 crore.
It was followed by Rajasthan, Tamil Nadu, Himachal Pradesh, Uttar Pradesh, Haryana, Madhya Pradesh and Punjab with proposals worth between Rs. 8,600 crore and Rs. 1,200 crore. West Bengal was ranked 14th with 24 proposals worth Rs. 1,243 crore. It was ahead of Bihar, Uttarakhand, Jharkhand, Jammu and Kashmir, Assam and Kerala.
Assocham said the bureaucratic process for clearances involving various ministries must be quickened to increase the absorption of FDI in India.
It has also recommended a mechanism to facilitate consultation between the centre and state governments before rolling out a policy to ensure that once a decision is taken, it does not get affected.
"Restrictions on sectoral caps and entry to sectors other than those of national importance must be liberalised further and constant review of policies must be done,” Rawat said.
“The government must ensure consistency of policy so as to perk up business and investors' confidence," he added.
He also said that the government needs to recognise that good regulations and efficient processes were key catalysts for the FDI. "Accessible, reliable information and efficient and predictable actions by public institutions help create a business environment conducive to investment," he emphasised.