UNPRECEDENTED 480% INCREASE IN FDI INFLOWS: KAMAL NATH MANUFACTURING GROWTH MAY CROSS 12% IN 2006-07
Date : 27 Feb 2007
Location : New Delhi
Foreign Direct Investment (FDI) inflows
into India during December 2006 registered an unprecedented increase
of 480% over the inflows in December of the previous year 2005, Shri Kamal Nath,
Union Minister of Commerce & industry, indicated here today.
“We received equity inflow of US$ 2.04 billion in December 2006,
as compared to US$ 0.35 billion in December 2005. This is the highest inflow
ever into the country in a single month. With this, the total inflows from
April 2006 to December 2006 are now about US$ 9.3 billion, as compared to US$
3.5 billion received during this period last year. The total inflows in the year
2005-06 were US$ 5.5 billion, while it is expected that by March 2007, we would
have received this year over US$ 12 billion of FDI equity inflows”, he said.
The Index of Industrial Production (IIP) in December 2006 went up
over the corresponding month of the
previous year. Manufacturing sector, which has an almost 80% weightage in the
Index, went up by 11.9%. With this, the overall IIP has grown between
April-December 2006 by 10.8% over the previous year, when during this period
last year, 8% rate of growth was recorded. “The Ministry of Commerce &
Industry is expecting this rate of growth further enhanced in the
last quarter of the year, so that during the entire financial year, i.e.
2006-07, the growth rate of industry can reach almost 11% and the
manufacturing rate of growth go beyond 12%”, Shri Kamal Nath said.
Meanwhile, In a continuous exercise to streamline the Industrial
in January 2007, the Ministry of Commerce and Industry notified the
de-reservation of 87 items from the list of items reserved for
small-scale industry. In a meeting of the Advisory Committee held last week,
it was decided to further de-reserve 125 items from that list and a
notification to that effect is being issued shortly. With this, 212 items
would have been de-reserved, leaving only 114 items reserved for SSI