Karnataka has emerged on top with highest share of 27.5% in total outstanding investments attracted by the information technology (IT) sector across India as of December 2013, apex industry body Assocham said.
''Total outstanding investments lured by Karnataka in the IT sector have increased from about Rs 433 billion as of December 2009 to over Rs 650 billion as of December 2013 thereby clocking a compounded annual growth rate (CAGR) of over 50% during the five year period,'' noted an IT sector-specific investment analysis conducted by The Associated Chambers of Commerce and Industry of India (Assocham).
'IT projects with investments worth over Rs 390 billion i.e. 60% share in total outstanding investments attracted by the sector in Karnataka remained non-starter as of December 2013 which has more than doubled from 29.6% as of December 2009,'' said D.S. Rawat, national secretary general of Assocham.
''Growing at a CAGR of over 13%, the total outstanding investments attracted by the IT sector amid top 20 states in India increased from about Rs two lakh crore as of December 2009 to over Rs 2.36 lakh crore as of December 2013,'' said Rawat. ''Over half of these total investments in IT sector as 58% remained non-starter as of December 2013.''
Gujarat has ranked second in terms of share in the total outstanding investments as the state garnered 17% share with investments worth over Rs 396.9 billion, though the state has registered just two% growth during the course of past five years.
Kerala (12%), Odisha (8%), Tamil Nadu (7%), Haryana (6%), Andhra Pradesh (6%), West Bengal (5%), Maharashtra (4%), Uttar Pradesh (3%) and Madhya Pradesh (2%) are other states with significant share in total outstanding investments attracted by government, private (both domestic and foreign) sources in the IT sector.
In terms of implementation, Madhya Pradesh has about 98% of investments in the IT sector in limbo followed by Maharashtra (90%), Uttar Pradesh (89%), Haryana (89%) and Kerala (88%).
Odisha has clocked highest growth rate of over 786% during five year period dating 2009-2013 followed by Madhya Pradesh (65%), Uttar Pradesh (54%), Karnataka (50%) and NCT of Delhi (40%) that figured amid top five states having high growth.
Punjab has witnessed highest negative growth of over 39% in inflow of investments in the IT sector during the aforesaid period followed by West Bengal (28%), Maharashtra (24%), Haryana (14%) and Tamil Nadu (2%).
The information technology sector contributes about eight% to India's gross domestic product (GDP) and employs about 30 lakh professionals directly and the industry is ranked on top as the largest organised private sector employer in the country.
