Investments of private sector in the State has declined from 30.1 per cent in 2004-05 to 11.4 per cent in 2014-15
By Our Staff Reporter
GUWAHATI, July 8: There has been a sharp fall in the share of private sector investment in Assam, according to a study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
While the State attracted 252 investment projects worth Rs 1.08 lakh crore since 2005-06, the contribution of private sector has declined from 30.1 per cent in 2004-05 to 11.4 per cent in 2014-15.
However, public sector investments, which accounted for 87% of total live investments, grew significantly to Rs 95,765 crore in 2014-15 from Rs 18,825 crore in 2005-06.
The main contributor to the investments was the services sector, accounting for 54% of the projects, followed by manufacturing (29%), electricity (11%) and mining (3%).
The services sector accounted for lion's share of about 57% of gross state domestic product in 2014-15, followed by agriculture and allied activities at 20% and industry 18%.
The services sector grew about 8% in the past decade, followed by industry (5%) and agriculture (3%).
Assam needs to “create dymic institutiol capacities for leveraging on its resource endowments and location advantage”, ASSOCHAM said, adding that this would need upgrading of physical and social infrastructure, creating a more investor-friendly policy framework and making the bureaucracy to play a more conducive role.
The State’s investment climate needs to be built upon the core strengths of the economy and region so that its resources can be maged efficiently, the study suggested. It also wants the State government to improve the facilities at some tourist hot spots, which are “losing their relevance in the absence of proper infrastructure”.
“The State needs to focus not only on the production of food grains but also their processing for value addition and marketing. Infrastructure needs a major overhaul in the agriculture sector. Good infrastructure facilities help overcome locatiol disadvantages faced by Assam. Investments in irrigation and watershed magement are immediate requirements in the State. Alongside, a definite roadmap for improving transport infrastructure, storage facilities, logistics, power, communications and marketing is required,” it said of the agriculture sector, adding that sectors such as fish rearing and processing, sericulture and silk textile, fibre products, construction, small plantation products, handloom, cane and bamboo handicraft need to developed for creation of additiol employment in the rural areas.
“Assam holds enormous potential for developing value added food products for both domestic and foreign markets which can help the State earn significant foreign exchange and create huge employment,” said DS Rawat, tiol secretary general of ASSOCHAM while releasing the findings of the chamber’s paper.