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New investments attracted by Punjab dropped 63% YoY: Study

Punjab has failed to capitalise on its core benefits thereby leading to a dismal economic growth scenario considering that new investments attracted by the state registered a fall of over 63 per cent year-on-year (Y-o-Y) i.e. from over Rs 7,200 crore in 2013-14 to just about Rs 2,600 crore in 2014-15, noted a just-concluded study by apex industry body ASSOCHAM. “However, new investments attracted by states across India have increased by over 44 per cent Y-o-Y i.e. from about Rs six lakh crore in 2013-14 to over Rs 10 lakh crore in 2014-15,” pointed out the study titled ‘Impact of delay in investment implementation in Punjab,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). “Despite boasting of a robust infrastructure base, Punjab has failed to lure investors over the years evidently as the new investments attracted by the state reached its peak level of Rs 36,650 crore in 2007-08 which had declined to a meagre Rs 2,600 crore in 2014-15 thereby registering a fall of about 93 per cent,” said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the the chamber’s study. Punjab had attracted total outstanding investments worth just over Rs two lakh crore as of 2014-15, with services sector accounting for 39 per cent share followed by electricity (31 per cent), construction and real estate (23.5 per cent), manufacturing (six per cent) and irrigation (one per cent). Poor execution of 52 investment projects has pushed up their costs by over Rs 41,900 crore i.e. almost 45 per cent of their actual cost of over Rs 93,390 crore, highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB). While 60 projects have reported time overrun ranging between 1-157 months. Punjab holds ample potential for growth and expansion of services sector, as such policymakers should aim to expand export related services to generation additional economic activity and more employment opportunities in the state, suggested the ASSOCHAM study.

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