India can attract $150 bn FDI in infra by 2010
The Survey wants both Centre and states to evolve a concerted strategy to ensure a more equitable distribution of flows.india Updated: Feb 27, 2006 16:02 IST
Against the overall flow of just $3.2 billion during first half of the current fiscal, India has potential to absorb $150 billion of foreign direct investment by 2010 in infrastructure sectors alone, while opening up of branded retail holds up further promise, the Economic Survey said.
The Survey for 2005-06 tabled in Parliament emphasised on evolving a well defined regulatory architecture to increase the comfort level of players to tap the huge potential.
Upbeat about the procedural simplifications and opening up of more sectors like single brand retail, up to 49 per cent in airports, the Survey wanted evolution of a holistic strategy to attract investments.
The Survey noted that despite the increase in India's share in global FDI from 0.5 per cent in 2002 to 0.8 per cent in 2004, it said FDI inflows into the country continued to lag behind inflows in some of the developing countries in Asia like China.
The country, which saw FDI inflows of $3.2 billion in April-September 2005, witnessed outflows of $0.9 billion in 2005-06, the Survey said.
Pointing at the regional disparities in attracting foreign investments, the Survey wanted both Centre and states to evolve a concerted strategy to ensure a more equitable distribution of such flows.
In terms of destination of FDI in the country, Maharashtra topped the list among states, followed by Delhi, Tamil Nadu, Karanataka and Gujarat, the Survey highlighted.