Private corporate investment is an indicator for economic activity in a state. Andhraites should be happy that AP tops other states in this respect which indicates that economic activity is booming. Andhra Pradesh, which has embarked upon building infrastructure to develop a new capital and other infrastructure requirement alone has accounted for almost 16 per cent of the total banks and financial institutions funded projects in 2015-16.
Four states — Andhra Pradesh, Gujarat, Maharashtra and Tamil Nadu — accounted for more than 50 per cent of the projects funded by banks and financial institutions (FIs) in 2015-16, leaving more populated northern states far behind.
Andhra which accounted for only 8.1% of private corporate investment in 2014-15 has almost doubled its share. Maharashtra and Gujarat which were far ahead of AP in 2014 – 15 have now been relegated to 2nd and 3rd places. For people who believe that KCR is a great performer, it would be an opener to know that Telangana is nowhere on the scene as far as investments are concerned.
According to a Reserve Bank of India (RBI) report on ‘Private corporate investment’, ( Link HERE for the full report) Maharashtra came second by bagging 14.8 per cent of the projects funded by banks and FIs. It was followed by Gujarat (14.5 per cent) and Tamil Nadu (9 per cent). In FY 2015-16, 41 banks and FIs sanctioned financial assistance to 352 projects with aggregate project cost of Rs 95,400 crore. In the previous year ended March 2015, banks and FIs had sanctioned assistance to 326 projects worth Rs 87,300 crore.