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Maharashtra is best state for industrial investment, says survey

Maharasthra has emerged as the 'best' place for industrial investment, according to the latest Business Today-Gallup MBA research report. Gujarat, Tamil Nadu, Karnataka and Andhra Pradesh follow Maharashtra, in that order.

For the survey, a questionnaire encompassing various investment indicators was prepared after a discussion with chief executive officers of top Indian companies and various bureaucrats. After vetting the response from the top 70 Indian companies, the above result was reached. The companies were based in Ahmedabad, Bangalore, Bombay, Calcutta, Delhi and Madras and are involved in consumer goods, manufacturing and services.

Moreover, the Bangalore-based Gallup MBA research company was given a set of 20 indicators to determine the best industrial investment destination in the country. The parameters included the unity of the ruling party, political stability, law and order situation, state government's cooperation to the industry, tax concessions, grants, financial-industrial policy, administrative merit, transparency and corruption, power supply and costs, continuity of liberal polices, infrastructure facilities (like availability of land, water, roads, railways, ports, airports, communications network), productivity, availability of skilled labour, labour-management relations, wages, labour disputes, work culture of labourers, markets, raw materials, housing, literacy, health services, development of industrial areas etc. the report is based on the information collated from these indicators.

Maharashtra emerged as the winner in the availability of physical infrastructure, power supply and quality, proximity to ports, presence of industrial zones and belts, policy implementation, quality of local government, and the law and order situation. The state also scored very favourably in government stability, labour productivity, literacy, and work culture.

The report states that the Shiv Sena-Bharatiya Janata Party government in Maharashtra, under Chief Minister Manohar Joshi's leadership, has given primary importance to electronics, research and development of agro-based products, garments and fruits production.

While the total investment in the state today stands at Rs 1,269.72 billion, projects worth Rs 579.66 billion are already under implementation. The largest project is the Rs 71 billion Krishna Valley irrigation project, followed by Rs 51.02 billion Hindustan Oman petro-products project, and the Rs 48.41 billion Nuclear Power project.

The state government is planning to improve the quality of those indicators based on which Maharashtra was ranked number one. This includes constructing nine 5-star hotels, industrial complexes, 'one-window' scheme for project approvals, roads, bridges, ports, developing airport services, speeding up the completion of power projects, and preparing a new energy policy.

Out of the total respondents, 51% gave Maharashtra a place of prominence for their investments, followed by Gujarat (46%), Karnataka (39%), Andhra Pradesh (29%) and West Bengal (19%). The development of new industrial centres along the Konkan belt has played pivotal role in pushing Maharashtra to the top rank.

Maharashtra is the only state in India putting no restrictions on the use of electric power of agricultural or industrial use. Importantly, Maharashtra has bagged the topmost position in policy implementation, responsive administration and law and order situation.

In the column termed 'CEO summary' Maharashtra's investment strengths are a well-developed and fast improving physical infrastructure all over the stake, most business-friendly state and local administration in the country; high level of urbanisation, and large markets for goods and services within the state whereas Maharashtra's weakness are: shortage of labour supply, and one of the highest rates of minimum wages in the country, deficient and high-priced power supply, and slow growth in the creation of new capacity; and over-burdened and relatively-poor coverage of health care system.

Compiled from the Indian media by Prasanna Zore