New Delhi: With record foreign direct investment (FDI) inflows in 2006, FDI equity inflows during 2006-07 expected to become more than double the equity inflows of $5.5 billion last year.
Foreign direct investment into India is set to cross $11 billion this fiscal, Commerce Minister Kamal Nath said on Wednesday.
Giving an overview of performance of the Department of Industrial Policy and Promotion (DIPP) during the year, UNI quoted the minister as saying, "Once the reinvested earnings of foreign companies already present in India is also taken into account in FDI inflows, which is the world-wide practice, the total FDI inflows in 2006-07 could be as high as $14 billion, compared to $7.7 billion last year".
He said the annual review of the FDI policy taking into account the changing requirements of investors has given new confidence to foreign firms, which are bullish on India.
In addition, the contribution of manufactured products to exports grew with a share of about 84 per cent in total merchandise exports during 2005-06. Manufacturing sector recorded a growth rate of 22.6 per cent in 2003-04, 29.7 per cent in 2004-05 and 23.4 per cent in 2005-06, the minister pointed out.
Industrial production grew by over 10 per cent during April-October 2006, a major highlight of this being the high level of growth recorded by the manufacturing sector.
Continuous liberalisation in FDI policy and simplification of procedures were contributing immensely to attracting increased FDI into India.
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