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Chandigarh: Investment Overview

 

There are 64805 Establishments in Chandigarh engaged in different economic activities other then crop production and plantations with 250572 persons working in them. The development of RGCTP has been anchored by Infosys, which has completed its state of the art campus due to which huge employment is expected, which will generate the rapid growth for Chandigarh economy. Though the city was not planned to be developed as an industrial city, as a result of which the industrial growth has been limited, but with start of RGCTP things will not be the same as earlier. Furthermore start of pollution free industries mainly for SSI is a very good step. However there is not much scope for expansion apart from existing Industrial areas of Phase-1 & Phase-2. About 40% are ancillary units producing components for the tractor industry. The important industries are light engineering industry, industrial fasteners, electrical & electronic items, machine tools, pharmaceuticals, basic metals & alloys, paper manufacturing, plastic goods, sanitary fittings, steel & wooden furniture and food products etc. The Net state domestic product stood at Rs.90349 lacs during the year 2007-08. For the year 2006-07, Chandigarh generated a trade surplus of Rs.13752.19 lacs.

So, Land availability for industries being a constraint, there is hardly any scope for further expansion of industry, apart from the existing Industrial Area Phase-I and Phase-II. Chandigarh Administration is focusing on promotion of Information Technology (IT) industry which requires less space and is also non polluting, through the Software Technology Parks of India (STPI).

FDI in Chandigarh
 

Chandigarh has not received any FDI during the year 2008-09. However, this is exceptional as the FDI inflows averaged Rs802 million for the period 2004-09. And the future increase in flow of FDI will be mainly due to setting up of Rajiv Gandhi Chandigarh Technology Park (RGCTP) with players like Dell, Quark, Ranbaxy and Reliance leading the way.

Table 2: FDI approvals – Chandigarh
2004-05 to 2008-09 (Rs m)

2004-05

2005-06

2006-07

2007-08

2008-09

1279

0

1894

839

0

Source: www.dipp.nic.in

Industrial Entrepreneur Memorandum

For the year 2008-09, state has not received any IEM proposal but during the year 2009-10, a healthy amount of IEMs due to RGCTP is expected to be received.
 

Table 3: Domestic Investments of Industrial Entrepreneur Memoranda

 

Proposed IEMs

Implemented IEMs

Year

INDIA

Chandigarh

INDIA

Chandigarh

 

No of
 IEM

Investment
(Rs m)

No of
IEM

Investment
(Rs m)

No of
IEM

Investment
(Rs m)

No of
IEM

Investment
(Rs m)


2004-05

5,548

2,897,820

2

10

310

34,790

0

0

2005-06

6,341

3,827,430

0

0

437

369,670

0

0

2006-07

5591

6924010

5

2340

418

207470

0

0

2007-08

3673

12257610

2

400

616

148800

0

0

2008-09

3849

11478790

0

0

592

118580

0

0

2009-10(may)

495

1765680

0

0

0

0

0

0

Source: siadipp.nic.in



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