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Monday, April 07, 2008

Investment is destiny

Geographical patterns in investment planned out today are the geographical patterns in per capita GDP of coming years. Ila Patnaik reviews what the CMIE Capex data says about investment in the big states of India. The surprise, for me, was the poor showing of states that one traditionally expects will do well: Tamil Nadu, Karnataka, Andhra Pradesh and Maharashtra (they're at ranks 7-10). At the same time, this is an encouraging phenomenon in that investment isn't all going to rich and successful states.

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