60% of IT investments in State are non-starters
- The Associated Chambers of Commerce and Industry of India (ASSOCHAM) estimates that Karnataka accounts for 25% of IT investments across India which has clocked a compounded annual growth rate (CAGR) over 50% over 5 yr period ended 2013.
- Karnataka is branded as “non-starters” because 60% ( Rs. 65,000 crore) of the total IT investments is outstanding (as of Dec 2013) and a substantial Rs. 39,000 crore did not take off. The projects remain in limbo even as investments over 5 yrs continued to grow & investments by the State jumped to Rs. 65,000 crore from Rs. 43,300 crore.
- At 27%, Karnataka finishes ahead of Gujarat-10% behind Karnataka at Rs. 39,690 crore . Kerala (12%), Odisha (8%), Tamil Nadu (7%), & Madhya Pradesh (2%) are other States with significant share in total outstanding investments attracted by government, private (both domestic and foreign) sources in the IT sector.
- Karnataka can be compared with Madhya Pradesh having about 98% of investments in the IT sector in limbo followed by Maharashtra (90%), Uttar Pradesh (89%), Haryana (89%) and Kerala (88%). Punjab contributes 8% of India’s gross domestic product and employs 30 lakh professionals directly as it has negative growth of over 39 per cent negative investments in It sector.
- Associated Chambers of Commerce and Industry of India (ASSOCHAM)
- IT investments in states