It is the turn of the smaller states to emerge as the preferred destination of both domestic as well as overseas investors, a recent finding by the industry chamber Assocham said.
The findings pointed out that smaller states like Uttaranchal, Himachal, Chattisgarh, Jharkhand, and even Jammu and Kashmir, henceforth, will emerge as preferred destinations for investment for both overseas and domestic investors because of opportunity cost that these states offer in terms of incentives, holiday schemes and availability of raw material to investors.
The findings state that the epicentre of investments in these states will be mining, iron and steel, power both thermal and hydro, extraction of coal bed methane, oil and gas, pharmaceuticals, electronics, organic food, food processing industry, watch assembly, IT park and infrastructure.
Releasing the chamber’s assessment, Mr Anil K. Agarwal, Assocham president, said that the chamber’s evaluation was based on enquiries that it has been receiving from the prospective investors about the prospects of future investments in the smaller states for the last 6 months continuously to explore investment opportunities in them.
The majority of the companies are of the opinion that in smaller states, setting up of a manufacturing base will be far easier for a number of reasons. These include comparatively cheaper rates for land acquisition, availability of larger opportunity cost in terms of 10 to 15 years tax holiday scheme, exemptions relating to state levies, easier accessibility to the political system and less bureaucratic hassles, said Mr Agarwal.
Moreover, the smaller states are competing to attract investments among one another and this is one of the reasons that such states have fine tuned their economic policies and smoothened their administrative systems to suit the requirements of the investors. It has also been discovered that in smaller states, it is easier to avail of environment clearance from the respective governments as compared to other states, the assessment pointed out
The findings pointed out that smaller states like Uttaranchal, Himachal, Chattisgarh, Jharkhand, and even Jammu and Kashmir, henceforth, will emerge as preferred destinations for investment for both overseas and domestic investors because of opportunity cost that these states offer in terms of incentives, holiday schemes and availability of raw material to investors.
The findings state that the epicentre of investments in these states will be mining, iron and steel, power both thermal and hydro, extraction of coal bed methane, oil and gas, pharmaceuticals, electronics, organic food, food processing industry, watch assembly, IT park and infrastructure.
Releasing the chamber’s assessment, Mr Anil K. Agarwal, Assocham president, said that the chamber’s evaluation was based on enquiries that it has been receiving from the prospective investors about the prospects of future investments in the smaller states for the last 6 months continuously to explore investment opportunities in them.
The majority of the companies are of the opinion that in smaller states, setting up of a manufacturing base will be far easier for a number of reasons. These include comparatively cheaper rates for land acquisition, availability of larger opportunity cost in terms of 10 to 15 years tax holiday scheme, exemptions relating to state levies, easier accessibility to the political system and less bureaucratic hassles, said Mr Agarwal.
Moreover, the smaller states are competing to attract investments among one another and this is one of the reasons that such states have fine tuned their economic policies and smoothened their administrative systems to suit the requirements of the investors. It has also been discovered that in smaller states, it is easier to avail of environment clearance from the respective governments as compared to other states, the assessment pointed out