Ind investments rise 12% during Jan-May

Investment Inflows (Rs/Cr)

• Gujarat 3,700
• Maharashtra 3,232
• West Bengal 777
• Metallurgical 1,890
• Food processing 1,677
• Electrical equip 1,234

New Delhi: There was a sharp dip of over 84 per cent in proposed investments in May, but there was a rise of 12 per cent in the first five months of this calendar year. In May 2023, about 99 industrial entrepreneur memorandums (IEMs) were filed with proposed investment of Rs12,778 crore, official sources told Bizz Buzz.

In comparison, in May 2022, there were 117 IEMs with a total investment worth Rs81,206 crore. On a year-to-year basis, this was 84 per cent fall. In terms of total investment during the January-May period, there was a 12 per cent rise, from Rs211,742 crore in 2022 to Rs237,265 crore this year.

Proposed investments are Part-A IEM filings, while actual investments are indicated by Part-B IEM filings. Gujarat, Maharashtra, and West Bengal were the leading States in terms of proposed investment of Rs3,700 crore, Rs3,232 crore, and Rs777 crore, respectively, during May 2023. Investment intentions reflected preference for metallurgical industries, the food processing industry, and electrical equipment with proposed investments of Rs1,890 crore, Rs1,677 crore. and Rs1,234 crore, respectively.

Metallurgical industries and electrical equipment were top sectors attracting investment in May 2022 too. Electrical equipment was also among the top three in April 2023. Industrial undertakings exempted from the requirements of licensing are required to officially file information -that is, Party A IEM-relating to the setting up of units.

Propelled by growth in priority sectors and driven by favorable megatrends, India’s manufacturing sector has opened itself into new geographies and segments, says a government website. Building on the competitive advantage of a skilled workforce and lower cost of labor, the manufacturing sector is also witnessing an increased inflow of capex and heightened M&A activity, leading to a surge in manufacturing output and resultant increased contribution to exports, it added.