labels: world bank, confederation of indian industry, economy - general
Corruption, limited infrastructure and regulation plague Karnataka''s industrial investment: World Bank-CIInews
Our Corporate Bureau
27 June 2005

Chennai: Though Karnataka ranks high amongst other Indian states on its investment climate, the industry is constrained by corruption, regulation and limited infrastructure, according to a Word Bank and Confederation of Indian Industry (CII) survey amongst 200 firms in the state.

Research by the World Bank and others shows that private sector performance in India continues to be constrained by a range of bottlenecks.

According to the World Bank-CII study Karnataka's performance on investment climate indicators is by and large good, though particularly in terms of infrastructure there is scope for considerable improvement. Overall on most indicators it ranks high relative to other states and is generally amongst the top 4-5 states. In several indicators Karnataka sets the benchmark for the rest of the states in the country.

The survey respondents ranked regulation, corruption and infrastructure as the top constraints affecting productivity and growth. The composite cost of power and loss of output due to power outages or surge in grid supply is amongst the highest for firms in Karnataka, which has serious implications for competitiveness and hence investment..

The survey was carried out across Bangalore, Mangalore, Mysore, Hubli-Dharwad.


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Corruption, limited infrastructure and regulation plague Karnataka''s industrial investment: World Bank-CII