60% IT investment projects in Karnataka in limbo
Updated: Mar 25, 2014 03:43:40pm
Bengaluru, Mar 25 (KNN) Information Technology (IT) projects with investments worth over Rs 39,000 crore that is 60 per cent share in total outstanding investments attracted by the sector in Karnataka remained non-starters as of December 2013 which has more than doubled from 29.6 per cent as of December 2009, according to an analysis.
Meanwhile, Karnataka has emerged on top with highest share of 27.5 per cent in total outstanding investments attracted by the IT sector across India as of December 2013, apex industry body ASSOCHAM said today.
“Total outstanding investments lured by Karnataka in the IT sector have increased from about Rs 43,300 crore as of December 2009 to over Rs 65,000 crore as of December 2013 thereby clocking a compounded annual growth rate (CAGR) of over 50 per cent 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 39,000 crore i.e. 60 per cent 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 per cent as of December 2009,” said national secretary general of ASSOCHAM, D S Rawat.
“Growing at a CAGR of over 13 per cent, 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,” he said. “Over half of these total investments in IT sector as 58 per cent 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 per cent share with investments worth over Rs 39,690 crore, though the state has registered just two per cent growth during the course of past five years.
Kerala (12 per cent), Odisha (eight per cent), Tamil Nadu (seven per cent), Haryana (six per cent), Andhra Pradesh (six per cent), West Bengal (five per cent), Maharashtra (four per cent), Uttar Pradesh (three per cent) and Madhya Pradesh (two per cent) 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 per cent of investments in the IT sector in limbo followed by Maharashtra (90 per cent), Uttar Pradesh (89 per cent), Haryana (89 per cent) and Kerala (88 per cent).
Odisha has clocked highest growth rate of over 786 per cent during five year period dating 2009-2013 followed by Madhya Pradesh (65 per cent), Uttar Pradesh (54 per cent), Karnataka (50 per cent) and NCT of Delhi (40 per cent) that figured amid top five states having high growth.
Punjab has witnessed highest negative growth of over 39 per cent in inflow of investments in the IT sector during the aforesaid period followed by West Bengal (28 per cent), Maharashtra (24 per cent), Haryana (14 per cent) and Tamil Nadu (two per cent).
The information technology sector contributes about eight per cent 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. (KNN/SD)
Meanwhile, Karnataka has emerged on top with highest share of 27.5 per cent in total outstanding investments attracted by the IT sector across India as of December 2013, apex industry body ASSOCHAM said today.
“Total outstanding investments lured by Karnataka in the IT sector have increased from about Rs 43,300 crore as of December 2009 to over Rs 65,000 crore as of December 2013 thereby clocking a compounded annual growth rate (CAGR) of over 50 per cent 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 39,000 crore i.e. 60 per cent 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 per cent as of December 2009,” said national secretary general of ASSOCHAM, D S Rawat.
“Growing at a CAGR of over 13 per cent, 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,” he said. “Over half of these total investments in IT sector as 58 per cent 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 per cent share with investments worth over Rs 39,690 crore, though the state has registered just two per cent growth during the course of past five years.
Kerala (12 per cent), Odisha (eight per cent), Tamil Nadu (seven per cent), Haryana (six per cent), Andhra Pradesh (six per cent), West Bengal (five per cent), Maharashtra (four per cent), Uttar Pradesh (three per cent) and Madhya Pradesh (two per cent) 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 per cent of investments in the IT sector in limbo followed by Maharashtra (90 per cent), Uttar Pradesh (89 per cent), Haryana (89 per cent) and Kerala (88 per cent).
Odisha has clocked highest growth rate of over 786 per cent during five year period dating 2009-2013 followed by Madhya Pradesh (65 per cent), Uttar Pradesh (54 per cent), Karnataka (50 per cent) and NCT of Delhi (40 per cent) that figured amid top five states having high growth.
Punjab has witnessed highest negative growth of over 39 per cent in inflow of investments in the IT sector during the aforesaid period followed by West Bengal (28 per cent), Maharashtra (24 per cent), Haryana (14 per cent) and Tamil Nadu (two per cent).
The information technology sector contributes about eight per cent 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. (KNN/SD)
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