FDI to cross $10 bn in '06-07, says Nath

Foreign direct investment in the country is expected to cross $10 billion during 2006-07, according to Commerce and Industry Minister Kamal Nath.

Releasing a compendium of the FDI policy today, Nath said FDI inflow during 2005-06 had touched $7.5 billion, of which $4.8 billion was the equity component and $2.7 billion comprised reinvested earnings.

This was 50 per cent higher than that in the previous year. India received $5.3 billion as FDI during 2004-05, of which $3.2 billion was as equity and $2.1 billion was in the form of reinvested earnings.

Expressing confidence that the growth trend in FDI inflow would continue in the current fiscal, the minister said, "They should cross $10 billion."

According to the compendium, India has received a total of $37.05 billion as FDI in the form of equity capital from August 1991 to December 2005.

The highest inflow since August 1991 has been from Mauritius, which accounted for 37.25 per cent at $11.11 billion, followed by the United States with 15.80 per cent share worth $4.91 billion.

Other countries in the top five included Japan, the Netherlands and the United Kingdom.