Investors pumped in an estimated Rs 22.56 billion in 208 projects in between mid-June 2008 and mid-April 2009, according to the Department of Industry. In the corresponding period last year, 158 projects, worth Rs 16.34 billion, were registered.
The country´s investment climate may have received a boost due to the Maoists´ being in power, an official of the Department of Industry told Republica, requesting anonymity.
"Maoists are well known for leading protests in industries, and most of their protests lead to long periods of industry closures. Thus many industrialists might have felt that the Maoists´ entry into government would put an end to strikes and restore peace in the industries," he said. "This rejuvenated confidence was directly reflected in the investments the industrialists made."
This year, largest chunk of investments went into the manufacturing sector. In the nine-month period, this sector received Rs 8.15 billion. However, this is a decline of 4.6 percent.
Investments in the manufacturing sector have been waning since the last few years largely because of the country´s weak security situation. As a result, the manufacturing sector´s contribution to the GDP has declined to around seven percent from around 10 percent in 2000.
Close on the heels of the manufacturing sector was the energy sector. In the nine-month period, six energy-based projects -- mostly hydropower -- were registered, attracting investments of Rs 6.51 billion. Last year, this sector had secured investments of only Rs 1.89 billion.
The third-most favored sector, in terms of investment, was the service sector. This sector secured investments of Rs 3.05 billion for 56 different projects. It had been pegged to create 3,378 jobs in the nine-month period, compared to 2,810 of corresponding period last year.
Among others: the mineral sector attracted investments of Rs 2.56 billion; the tourism sector secured Rs 1.01 billion; the construction sector received Rs 850 million; and agro-based industries gained Rs 402 million in investment.
With the collapse of the Maoist-led government last month, however, industrialists may now be forced to become more cautious, which could slow the flow of new investments in the coming days, the official of the Department of Industry said. And that decrease in investments could directly translate to fewer job opportunities being created by the industries.
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