Karnataka, Gujarat, TN garner lion's share in investment

Leading States

- India gets 117 IEMs in May

- Rs40,620 cr for Karnataka

- Rs19,894 cr for Gujarat

- Rs4,150 cr for Tamil Nadu

New Delhi: Karnataka, Gujarat, and Tamil Nadu were the leading States in terms of proposed investment in May as they accounted for 79 per cent of the total investment in India. The three States got industrial entrepreneurial memorandums (IEMs) filed worth Rs40,620 crore, Rs 19,894 crore, and Rs 4,150 crore, respectively, official sources told Bizz Buzz.

For the entire country, 117 IEMs were filed with total proposed investments of Rs81,206 crore.

The sectors attracting most investment intentions are chemicals (other than fertilizer), electrical equipment, and metallurgical industries with proposed investments of Rs 59,294 crore, Rs 6,077 crore, and Rs 1,055 crore, respectively.

After liberalisation in 1991, industrial licensing was stopped, but undertakings exempted from the requirements of licensing are required to file information- that is, IEM - relating to the setting up of units. After filing, they get a receipt of such information by the Department for Promotion of Industry & Internal Trade, which is called 'IEM acknowledgement.'

But this acknowledgement can't be construed as a clearance or approval to carry on the industrial activity as contemplated in the IEM, as the it remains subject to the provisions of statutes, regulations, notifications, etc., that are issued by the central and State governments.

The chemicals industry, worth $178 billion in 2019, is estimated to grow to $304 billion by 2025, registering a CAGR of 9.3 per cent. PLI schemes have been introduced to promote bulk drug parks, with a budget of Rs1,629 crore.