Tuesday, January 2, 2007: Foreign Direct Investment (FDI) is vital to take economic growth of the country on new heights. Since the past few years, India has been rapidly moving into a liberal mode from a restrictive regime.

The country received high FDI in fiscal 2006, with equity inflows likely to cross $11 billion, which is believed to be twice of the amount gained in 2005, says the data revealed by Commerce and Industry Union Minister Kamal Nath.

He also gave an overview on India’s industrial policy and trade promotion that took place during 2006.

If the reinvested earnings of foreign companies is also taken into account in FDI inflows, the total FDI inflows in 2006-07 will reach to an whopping amount of $14 billion as compared to 2005 when it was $7.7 billion.

Rising by leaps and bounds, India’s manufacturing sector has recorded a growth rate of 23.4 per cent in 2005-06.

Also, software industry and financial services will witness large cooperation from foreign investors in approaching years. Investments made in the manufacturing industry is considered as the ‘first mile investments’ and are expected to be followed by more funds to finance projects, added Nath.