'Kerala only state to record growth in investment proposals'

Thiruvananthapuram: Kerala is the only state in the country to have recorded growth in receiving industrial entrepreneurs' memorandum (IEM) proposals during 2012-14 as against 2009-11, according to Assocham.

The growth rate is to the tune of 315 percent, the industry body said in its study titled 'Realising economic growth potential in Kerala'.

"Kerala had received industrial entrepreneurs memorandum (IEM) proposals worth over Rs 17,600 crore during 2012-2014, just about one percent of the total IEMs worth about Rs 15 lakh core received across India.

"Kerala had attracted outstanding investments worth about Rs 3 lakh crore accounting for just about two percent of the total outstanding investments worth Rs 157 lakh crore attracted by states across India as of 2014-15," the study said.

Services sector (other than financial) accounted for the largest share of 54.5 percent in total outstanding investments attracted by the state, followed by manufacturing (27.5 percent), real estate and construction (8 percent) and electricity (7.5 percent), Assocham said in a release.

"Investments attracted by Kerala have grown at a compounded annual growth rate (CAGR) of over 13 percent during the course of past decade i.e, between 2004-05 and 2014-15," Assocham Secretary General D S Rawat said.

Investments attracted by construction and real estate sector have recorded highest CAGR of about 44 percent, followed by mining (20 percent), irrigation (18 percent), manufacturing (15 percent), services (13 percent) and electricity (4 percent).

However, about 54 percent of total investments attracted by Kerala have remained non-starters as of 2014-15, the study said.