FDI in India on High Growth Path

December 28, 2006	(1 votes, average: 4 out of 5)  Loading ...
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Needless to say, Foreign Direct Investment plays a critical role to add to economic growth of the country. India has been rapidly stepping into a liberal mode from a restrictive regime. The country received high FDI in the year 2006, with equity inflows expected to cross $11 bn. The amount is believed to be twice of what has come last year, says data revealed by Commerce and Industry Union Minister Kamal Nath.

Mr. Nath also shed considerable light on India’s industrial policy and trade promotion took place during the year.

In case, the reinvested earnings of foreign companies is also taken into account in FDI inflows, the total FDI inflows in 2006-07 will shoot up to $14 bn whereas it was $7.7 bn last year.

According to the facts and figures, India’s manufacturing sector has witnessed a growth rate of 23.4 per cent in the year 2005-06 which is the highest among the past three years’ records. Industrial production has grown by leaps and bounds during April-October 2006.

Software industry and financial services are likely to see great cooperation from the potential foreign investors in the next coming years. Investments made in the manufacturing industry is considered as the ‘first mile investments’ and are expected to be followed by more funds to finance projects, added Nath.

News Published Under:   Real Estate India, Foreign Direct Investment in India |

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