It was followed by the northern region, which accounts for 30.5 per cent. The southern region accounted for 21.6 per cent while the eastern region received only 5 per cent of the total investment proposed in the country.

The share of the southern region has remained constant, while that of the eastern region has fallen significantly from 19 per cent in 1994 to a little over 5 per cent in June 1997, according to a study by the PHD Chamber of Commerce and Industry (Phdcci). The study analyses the pattern of domestic and foreign investment in industry and infrastructure in the northern region during the post reforms period (1991-97).

The report aims to summarise the changing conditions and factors influencing investment decisions in India, to analyse state-wise and pattern of domestic and foreign investment flows innorthern region, to identify the factors leading to such a pattern and to formulate suggestions that would enhance investment flows.

While the northern region, Uttar Pradesh and Himachal Pradesh are ahead of other states in term of the proposed investment and investment per capita respectively.

Between August 1991 and August 1997 investment of Rs 1,14,264 crore and Rs 1,33,252 crore were proposed for Mahrasthra and Gujarat respectively, which amounts to 17.0 per cent and 19.8 per cent respectively of the total all India investment envisaged. In comparison, Uttar Pradesh with a proposed investment of Rs 64,830 crore is only 9.6 per cent of the total proposed investment.