UP, Gujarat among top 5 states in new investments; Kerala, Assam at bottom

• According to a recent study by the RBI, five states namely Uttar Pradesh, Gujarat, Odisha, Maharashtra and Karnataka accounted for more than half of the total bank-assisted investment proposals made during the year 2022-23.
• In bank-assisted projects, Kerala, Goa and Assam are at the bottom of the table in getting the lowest number of new investments.
• This mirrors the skewed pattern of industrialisation in the country.

Key Findings

• The overall investment plans shot up by 79.50 percent with a record capital outlay of Rs 352,624 crore.
• The pick-up in investments is largely due to
  • The capital expenditure plans of the government
  • Revival in private capex in certain key sectors
  • Rising business optimism
• The following provided a conducive environment for the private corporates to undertake fresh capital all India investment
  • A sustained pick-up in bank credit in recent periods
  • Rising capacity utilisation
  • Improved business outlook and demand condition
  • Various government policy initiatives to support investment activities.

Purpose-wise Pattern of Projects

• The investment in green field projects accounted for the largest share of 93.1 percent in the total cost of projects financed by banks and FIs during 2022-23.
• The infrastructure sector accounted for 60 percent share in the total cost of projects during 2022-23.
• Within the infrastructure sector, roads & bridges held a significant share in the total project cost, supported by the “Bharatmala” initiative.

Prelims Takeaway

• Reserve Bank of India
• Bharatmala Initiative