Maharashtra continues to be the most favoured investment destination for foreign direct investment while Gujarat has slipped to fourth position in attracting foreign direct investment, a Federation of Indian Chambers of Commerce and Industry survey has said.
Maharashtra topped the chart in terms of attractiveness at sub-national level in a weighted index calculated on the basis of individual ranking provided by participants of Ficci FDI Survey 2006.
Gujarat slipped to fourth position in FDI attractiveness this year as compared to second in 2005 while Tamil Nadu climbed to be the second most favoured foreign investment destination in 2006 from its previous year's fourth position, the survey said.
Karnataka and Andhra Pradesh continued to remain at the third and fifth positions respectively in 2005-06. The survey also rated the country's FDI attractive index, which improved from last year's value of 3.9, registering a value of 4, i.e. India stands as a 'moderately attractive' investment destination.
Infrastructure, market conditions and operational parameters formed the basic components in the computation of FDI attractiveness index, it said.
Almost seven in 10 foreign investors have reported success in terms of profitability targets set for their Indian operations.
Ninety-one per cent of the companies making profits say they have been successful in meeting their profitability targets in India, it added.
About 87 per cent of respondents said there exist opportunities for greater FDI in India and nearly 83 per cent are considering expansion of their India operations, the report said.
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