Mumbai: The government seeks to double the FDI inflow to $30 billion this fiscal in order to maintain a growth rate of 9% per annum over the next five years.
“While FDI equity flows were $5.5 billion in 2005-06, it increased almost three times to $15.7 billion in 2006-07. We have set a target of $30 billion in 2007-08,” Union Minister for Commerce and Industry Kamal Nath said on 29 May at the 3rd India-Gulf Corporation Corporation (GCC) Industrial Forum said here.
Nath said resources for these investments are expected to come from both domestic and foreign sources.The economy grew by 9.2% in the last fiscal.
“To achieve a growth rate of 9% per annum over the next five years, starting 2007-08 we need an investment rate of 35.1 of GDP,” the Minister added.
Nath also said that the government was in the process of negotiating a free trade agreement with GCC and expected that the talks would conclude successfully very soon.