CHENNAI: Tamil Nadu has grabbed 16 per cent of the funds that came into the country during the first half of the financial year 2021 (H1FY21), according to CARE ratings. The State, which was ranked third during the same period last year, has now surged ahead to the top spot.
Andhra Pradesh ranked the second garnering 11 per cent of the investments, while Maharashtra, Rajasthan and Karnataka have attracted seven per cent investments each, says CARE Ratings, sourcing CMIE data of November 1, 2020.
“This is due to the proactive steps taken by the State to support industry and facilitate investment. Our performance continues to be strong and we will continue to attract more investments into the State,” a top Industries Department official told TNIE.
In the first half of financial year 2020, Andhra Pradesh had the highest share of 23 per cent in capex projects, totalling Rs 1.1 trillion, while in H1FY21, TN’s share amounted to Rs 20,000 crore. The CARE ratings comes a boost for the State which was already ranked as the second-most favoured investment destination in the country by Projects Today, a data bank of new and ongoing projects.
In the first quarter of the financial year (Q1FY21), Tamil Nadu topped the list with 17 business pacts worth Rs 18,236 crore being signed, cornering 18.63 per cent of the total fresh investments. Similarly, in the second quarter, the State was way ahead of others as it attracted a whopping 132 projects worth Rs 23,332 crore. It stood second behind Chhattisgarh, which rose in ranking above Tamil Nadu due to public sector investments.
As per CARE Ratings, all-India investments for new projects have been falling for the past five years, during April-September, except for the first half of financial year 2019. It had then risen by 29 per cent on a year on year basis to Rs 7.7 trillion from Rs 6 trillion in the same period in 2018. The new projects announced for H1FY21 fell sharply by 69 per cent to Rs 1.5 trillion, compared with Rs 4.8 trillion last year.
This fall was attributed to lack of economic activities due to the pandemic and the lockdown that followed. As the enterprises were faced with Covid-induced challenges, the decline in capex investments was somewhat expected, said the CARE report.
Rs 23,332 crore
In second quarter of the financial year, the State was way ahead of others as it attracted a whopping 132 projects worth Rs 23,332 crore