Karnataka stands at top among the states of the country in terms of manufacturing excellence, according to a study by industry chambers Assocham on Thursday.

The study was conducted by Assocham's Economic Research Bureau.

Karnataka ranks third in attracting investments in the manufacturing sector, leaving states like Gujarat behind, according to the study.

Of the total investments attracted by states across the country which are worth Rs.169 lakh-crore as of 2016 fiscal year, Karnataka accounted for 6.3 per cent share with Rs 10.7 lakh-crore worth investments.

Karnataka, according to the study, also ranks third among the states in terms of low ratio of interest cost.

"Karnataka has performed decently on parameters like growth in number of industries, capacity utilisation and capital structure, input cost. However, the state needs to focus on improving efficiency along with low employee cost and high rail density."

"The Union government must address issues relating to poor product quality, infrastructural bottlenecks and inadequate efforts at research and development from a holistic macro perspective, as they have collectively taken a toll on India's manufacturing competitiveness," the study added.