THE GOVERNMENT has decided to set up an expert committee to look into the sectors into which FDI was flowing and its impact on the rural economy.
“The purpose of this exercise is to ensure equitable distribution of FDI and to bridge the rural-urban divide,” Commerce and Industry Minister Kamal Nath told the consultative committee attached to his ministry on Tuesday evening.
FDI equity inflows between April and November 2006 had been $7.2 billion -- the highest ever received in equity capital since 1991.
Emphasising that the higher inflows as well as the new credit rating reflected growing investor confidence in India, the minister said that FDI inflows by the end of this fiscal would reach $12 billion, a 120 per cent growth over the previous year.
He said FDI not only helps generate economic activities and jobs, it also enables transfer of technology and managerial capabilities.
gaurav.choudhury@hindustantimes.com