India has set a target to attract $35 billion in foreign direct investment during the current fiscal. Commerce and Industry Minister Kamal Nath said on Friday. The ambitious target comes on the back of a record inflow of $24.57 billion in FDI through fiscal 2007-08 period.
The FDI inflow in 2007-08 saw an increase of 56.50 per cent over $15.70 billion in the previous year. India, which saw a GDP growth of 8.7 per cent in 2007-08, aims to more than double its FDI inflows between 2006-07 and end of the current financial year.
“India remains an attractive investment destination and it will be a good parking lot for investors. FDI inflows reflect the growing confidence (of global investors) in India,” Nath said. He said 80 per cent of the FDI inflows in 2007-08 went into greenfield projects and not for acquisitions. “There has been a phenomenal level of confidence in India as an investment destination starting from 2004-05. In just four years, inflows have increased eight times,” Nath added.
Taking into account the reinvested earnings, FDI inflows in India for 2007-08 would be $30 billion in 2006-07 against $19.5 billion in the previous fiscal.
Sectors that attracted the maximum FDI inflows in 2007-08 are services, telecom, housing, construction activities, real estate, electrical equipment, computer software and hardware.
CMP Asia Ltd of Mauritius invested $654 million in HDFC Housing Finance, Singapore-based Biometrics Marketing invested $459 million in Relogistics Infrastructure in the petroleum and natural gas sector. The company made other investments of $761 million during March in the petroleum sector.
In 2006, India ranked fourth after China, Hong Kong and Singapore as a major investment destination in Asia. “We now expect our position to have reached at third after China and Hong Kong,” Nath said.
Mauritius continued to be the top investing country in India during 2007-08, with inflows from the country more than doubling to $1.6 billion from $578 million in 2006-07. Singapore followed Mauritius.
Inflows from Japan increased to $761 million from the level of $85 million in 2006-07.
Nath further said foreign investments of about $9 billion, for which shares have not been issued, have already been carried forward into the first month of the current fiscal.