Uttar Pradesh tops in attracting bank funds for projects
Uttar Pradesh topped the list of states that attracted investment funds from banks and financial institutions pushing Maharashtra behind in a year of record project sanctions, data from a study by RBI staff shows. The state accounted for the highest share (16.2 per cent) in the total cost of projects sanctioned by banks/financial institutions, followed by Gujarat, Odisha, Maharashtra and Karnataka during 2022-23.
The envisaged capital investments of private corporates, based on the projects sanctioned by banks and financial institutions, increased for the second consecutive year after remaining subdued during 2019-20 and 2020-21. The total cost of projects sanctioned during 2022-23 increased 6.7 percent over the previous year to a record high of Rs 2,66,547 crore.
The share of UP went up from 1.1 percent during 2013-14 to 16.2 percent in 2022-23 according to a study titled “ Private Corporate Investment: Performance and Near-term Outlook” published in the latest RBI bulletin. In the same period Maharashtra’s share went down 19.7 percent to 7.9 percent.
RBI staff Shreya Bhan, Rajendra N Chavhan and Rajesh B Kavediya published in the latest RBI bulletin. The views expressed in the article are those of the authors and do not represent the views of the Reserve Bank of India.
The share of Odisha in the total cost of projects improved significantly 11.8 percent from the previous year’s 2.2 percent as well as the average share recorded during the period 2013-14 to 2020-21 which was 4.5 percent. The Government’s thrust on capex, besides various policy initiatives to revive the investment cycle, and improved economic outlook provided a conducive environment for the private corporations to undertake fresh capital investment, the
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