New Delhi: Five states, including Gujarat, Maharashtra, Orissa, Andhra Pradesh and Karnataka, attracted about 50% of the total Rs105 lakh crore investment proposals made in 20 states, reports PTI.
"These five states have emerged as the most preferred investment destinations attracting 52.42% of total investment proposals of about Rs105 lakh crore made in 20 states in the past four years," an Associated Chambers of Commerce & Industry (Assocham) study said.
Gujarat received investment proposals worth Rs12 lakh crore, followed by Maharashtra, Orissa, Andhra Pradesh, and Karnataka, Assocham secretary general D S Rawat said in a statement.
Among sectors, which received maximum amount of funds in these states, electricity topped the chart receiving 40.3% investments, followed by services 22.6%, manufacturing 22.1%, real estate 9.9% and mining 2.4%, the study said.
It said that electricity sector got the highest share of investments in states like Uttarakhand, Chhattisgarh, Himachal Pradesh, Madhya Pradesh and Bihar.
States like Kerala, Jammu and Kashmir, Punjab and Maharashtra emphasised more on development of services industry, the study said.
For real estate sector, Haryana was a major destination as it attracted 57.8% of the total investment proposals, it added.
Apart from these five states others in the list included West Bengal, Madhya Pradesh, Haryana, Jharkhand and Himachal Pradesh.
RBI’s deputy governor Dr KC Chakrabarty has said that the industry needs to make a promise to the customer that banking transactions will become cheaper, faster and easier over the next decade
Banks are increasingly adopting new technologies, however, these have failed to bring down transaction costs, said Reserve Bank of India (RBI) deputy governor Dr KC Chakrabarty while speaking at a banking conference organised by the Indian Banks' Association and the Federation of Indian Chambers of Commerce and Industry (FICCI) in Mumbai. Dr Chakrabarty said that the net interest margin of banks has not reduced much especially when the structure of the business has not changed.
He said technology must enable customer facilitation in terms of cost, time and convenience and it should be dovetailed to customer needs and expectations.
About two years ago, the RBI allowed 18 banks, including State Bank of India, ICICI Bank, Axis Bank, HDFC Bank and Bank of India to offer mobile banking services across the country.
However, the volume growth in mobile banking is still very low at 400,000 transactions per month, out of which one bank's contribution is more than 300,000 transactions alone. Some banks have as low as two mobile banking transactions per month, Dr Chakrabarty said.
He said that the intermediation costs of banks in India still tend to be higher than those in developed banking markets, which signals that there is a need to increase the penetration and bring down the cost per transaction.
At the same time, we need to develop effective and robust delivery models that can reach each customer irrespective of his/her location across the country, he added.
Although the discussion was focussed on transactions in the next decade, almost all panellists except Dewang Neralla, director, Atom Technologies and co-founder and director, Financial Technologies Ltd, failed to address the issue of secure and safe transactions.
Mr Neralla said going forward, we need to provide safe and secure environment to end users, which can increase the transaction volume and ultimately can bring down the cost as well. He gave an example of Tata Sky's subscription service activation/recharging through mobiles. He said more than 10% of Tata Sky's total volumes are sold through this model at a much cheaper cost. This shows that if you can create a safe and secure model, customers do not hesitate to adopt it, Mr Neralla added.
Later, commenting on the recent crash of HDFC Bank's Net banking facility, Dr Chakrabarty said that each bank has certified that they do have robust backup systems. However, customers are often left in the lurch due to technical issues at the bank's end.
New Delhi: Industrial output growth is likely to be sluggish in the range of 7%-8% in July, the second month in a row this fiscal when the factory output may expand by only single digit, reports PTI.
The Index of Industrial Production (IIP), which measures the industrial growth, for July is scheduled to be released by the government tomorrow.
Industrial growth had slipped to a 13-month low of 7.1% in June as manufacturing output dropped. It had fallen to single-digit growth after being in double-digits for eight consecutive months.
"We know the industrial growth is going to slow down. It is not going to be what it was. It is going back to base level," Planning Commission deputy chairman Montek Singh Ahluwalia said.
He, however, exuded optimism that despite slowdown India's gross domestic product (GDP) growth in this fiscal will reach the 8.5% target set by the government.
"Agriculture growth, which was slightly lower in the first half, should be better in second half. I remain hopeful that 8.5% (economic growth for the fiscal) is possible," Mr Ahluwalia said.
The country's GDP had grown by 8.8% in the first quarter, against 6% in the April-June period of last fiscal.
Global rating agency Crisil said it expected the IIP growth in July to be 7.6%.
"Our forecast is of 7.6% growth (in IIP figure for July). We believe sectors like auto and transportation would perform well, while cement will be weak. Growth of capital goods segment will also slow down," Crisil chief economist D K Joshi said.
He also attributed the low growth prospect to wearing off of the base effect.
"The growth during the first few months of 2009 was low which resulted in big jumps in growth rates in factory output in the same months of this year. Now that low base effect is no longer true," Mr Joshi added.
Senior economist and former director of Indian Council of Research in International Economic Relations Rajiv Kumar concurred with this view.
"The IIP growth may come down. The low base effect has withered away. And I am not sure how strongly the growth in manufacturing sector will perform," he said.