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Tamil Nadu

Tamil Nadu

Tamil Nadu most attractive for investment

Special Correspondent

CHENNAI: Tamil Nadu is the most attractive State for foreign firms seeking to invest in India, thanks to its better quality infrastructure and governance. In a recently compiled India State index of attractive operating environments compiled by an Oxford-based consulting firm, Tamil Nadu came up trumps.

The four other states that joined Tamil Nadu at the top slot are Karnataka, Maharashtra, Delhi and Gujarat. All of them are economic high performers, who have invested in infrastructure and human capital and have relatively stable governance frameworks. However, their high business costs and poor economic management pulls them a few notches lower.

According to Oxford Analytica, an international, independent consulting firm drawing on a network of over 1,000 senior faculty members in Oxford and other major universities around the world, India’s large developed states offer the most attractive operating environments for foreign firms. The index reveals a wide variation in State performances, highlighting the crucial influence State-specific factors exert on India’s business outlook.

The smaller states of Himachal Pradesh, Goa and Puducherry proved surprisingly attractive, with Goa topping the rankings for human capital provision. The cost of doing business is lowest in West Bengal and Uttar Pradesh. The eight north-eastern States fall in the lower half of the ranking, due to their underdeveloped economies and remote locations.

The least attractive State for doing business is Jharkhand, closely followed by Arunachal Pradesh and Bihar, due mainly to their poor state capacity, infrastructure and governance, according to a release.

The Oxford Analytica India States Index rates each of India’s 28 states plus two major Union Territories (Delhi and Puducherry) according to each State’s overall attractiveness to organisations seeking to operate in them.

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