India's Largest Database on New Projects
January
8, 2008: As per the review of Department of Industrial Policy and Promotion (DIPP),
with the percentage of total investment, share of FDI has gone from 2.55 per
cent in 2003-04 to 6.42 per cent in 2006-07.
Gradual
delicensing of sectors and ease in doing business for global companies has led
to foreign direct investment (FDI) more than doubling its share in the total
investments in India between 2003-04 and 2006-07 with inflows recording a
five-fold rise in the last three years.
After
receiving FDI of $15.7 billion in the last fiscal, an ambitious target of $30
billion had been set for 2007-08. Till August this fiscal, inflows of $6.44
billion were recorded with maximum funds coming through tax haven Mauritius.
Reflecting the growing interest of foreign investors into the country, share of
FDI in India’s Gross Domestic Product has also gone up from a mere 0.77 per
cent to 2.31 per cent in the last financial year. As per the report, only a
handful of sectors remain within the ambit of compulsory licensing on account of
safety, security and environmental concern, due to progressive delicensing.
India has also improved in the World Bank’s ranking of Doing Business 2008 to
120 in 2008 from 138 in 2006.
Consequent
to the policy undertaken, the share of industrial sector to the GDP (at constant
prices) has grown from 25.6 per cent in 2003-04 to 26.6 per cent in 2006-07.
This
has been possible due to growth of the industrial sector from 7.4 per cent in
2003-04 to 10.9 per cent in 2006-07 and along with a double digit growth of
manufacturing sector from 6.6 per cent in 2003-04 to 12.3 per cent in 2006-07.
The
capital goods sector recorded a growth of 13.9 per cent in 2004-05, 15.8 per
cent in 2005-06 and 18.2 per cent in 2006-07. This indicates a robust capacity
addition in industrial sector.
Source: Deccan Herald