Investment proposals up 131% to Rs1.70trn

New Delhi In March, 110 industrial entrepreneur memorandums (IEMs) with a total proposed investment of Rs169,756 crore, were filed. This was a quantum jump of more than 131 per cent over Rs73,333 crore in March 2022.

These were IEM Part-A filings, indicating intentions of industrial investment; Part-B filings mean actual investment. These two figures are important indicators showing the health of manufacturing in the country.

It may be recalled here that in the last calendar year, IEM Part filings had dropped to Rs424,101 crore, which was 45 per cent less than Rs771,428 crore in 2021.

Odisha, Gujarat, and Tamil Nadu were the leading States in terms of proposed investment of Rs122,162 crore, Rs23,377 crore, and Rs5,377 crore, respectively, official sources told Bizz Buzz.

IEMs reflected preference for electric equipment, chemical (other than fertilizer), and metallurgical industries with proposed investment of Rs23,745 crore, Rs14,009 crore and Rs2,199 crore, respectively. In March 2022 too, Odisha was the leading State attracting proposed investment of Rs54,842 crore, followed by Maharastra and Rajasthan.

In terms of sectors, metallurgical industries did well in March 2022; in fact, the investment was proposed in this sector, of Rs55,947 crore. The Narendra Modi government has come up with various measures to promote manufacturing. In a recent interview to a magazine, PM Modi said, “We have been focusing on increasing manufacturing and improving ease of doing business (EoDB) since 2014. Through focus on world class infrastructure, skill development of our workforce, supportive policies and attractive fiscal incentives, we are transforming our manufacturing sector.”

Citing manufacturing decisions by Apple and Micron in India, he said: “The growth of Apple’s manufacturing footprint in India, the decision of Micron to set up semiconductor assembly in India, all show the increasing attractiveness of India as a manufacturing destination.”

Prime Minister Modi stated: “Building up scale and volume is critical to being able to turn India to a competitive alternative global production hub. That is where attracting investments and creation of manufacturing capacities is essential for the development of the supply chain. Our PLI schemes are designed to incentivize companies to increase their manufacturing capacities and local value addition year on year.”