India Inc Q2 investment plans up 52 per cent quarter-over-quarter at Rs4,40,353 crore: Assocham

The investment plans of India Inc soared 52 per cent quarter-over-quarter during July-September 2009-10, riding the easy access to funds, turnaround in domestic demand and a revival in industrial production, industry body Assocham said.

Investment announcements of corporate India during the second quarter of the current fiscal ended September 2009 amounted to Rs4,40,353.30 crore on top of Rs2,89,703.78 crore recorded during the first quarter, Assocham said in a report on `Emerging Trends in Corporate Investments.'

There was a surge in new industrial projects and expansion plans of domestic companies, according to the study conducted under Assocham Investment Meter.

As per the findings of the study, Andhra Pradesh emerged as the leading state in attracting domestic corporate investments while Gujarat and Maharashtra followed as second and third favourite investment destinations during the first six months of the current fiscal.

The top sectors that witnessed an upsurge in planned investment roll-outs included power, metals and mining, real estate, energy and auto/auto components.

While the study found a 3.41 per cent decline in foreign direct investments in the country, Assocham attributed the rise in domestic corporate investments to various reasons, including pent-up demand, due to the stimulus effect and easy monetary flows.