Chennai: Tamil Nadu and Rajasthan have emerged as the two prominent states to have the highest growth potential in the automobile sector for attracting new investors, industry body Assocham said on Wednesday.
"Tamil Nadu and Rajasthan have registered a high growth in employment generation,per capita income and monthly per capita consumption expenditure share in durable goods and are ahead of National growth," according to a study released by Assocham titled 'Automobile industry in India: Saturated and Potential States'.
The study also revealed that Tamil Nadu GSDP and high motor-vehicle registration were more than the National level growth, Assocham National Secretary General D S Rawat said.
While the country's CAGR on employment generation was 3.7 per cent between 2000-01 and 2007-08,"Rajasthan and Tamil Nadu registered 6.8 per cent and 4.4 per cent respectively".
Noting that India's per capita income grew at a CAGR of over six per cent between 2004-05 and 2010-11, it said the state-level per capita income for the same period stood at 10.4 per cent for Tamil Nadu, 9.7 per cent for West Bengal, 9.5 per cent for Jharkhand, 8.7 per cent for Punjab and 8.1 per cent for Uttar Pradesh.
Chhatisgarh, Punjab, Rajasthan and Tamil Nadu were the common states in which per capita income and employment generation was more than all-India figures, the study said.
Assocham Research Bureau undertook the study on three points -employment opportunities generated between 2000-2007, -- per capita income growth, -- and to ascertain whether states with rising per capita income incur higher levels on transportation the release added.