19 January,2009 02:11 PM IST | | PTI
The government today said the USD 35-billion FDI target for this fiscal will be achieved despite the global economic slowdown and invited investors in public-private-partnership for infrastructure projects.
"FDI during 2008-09 will be 35 billion dollar... We were planning USD 40 billion but for the events (slowdown)," Minister of State for Industry Ashwani Kumar said at the India-UK business council here.
On predictions of greater foreign direct investment (FDI) inflows in the next few years, he said, "Some people have predicted that in another three to four years (by 2012) we would be getting about USD 60 billion but I do not think that is going to happen."
He emphasised on the need for more FDI, especially in the infrastructure sector. "We are open to any suggestions, which will promote more FDI.
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We need in the PPP mode large dose of FDI to supplement our domestic capital commitment to large infrastructure projects as we intend to spend USD 500 billion on infrastructure development by 2012 an some part of it has to come in the form of FDI," he said.
FDI inflow of USD 14.6 billion in the first five months of 2008-09 showed an impressive growth of 124 per cent over the same period last year.
Earlier, in October the government had expressed optimism saying India would exceed its target of USD 35 billion this fiscal. Sectors that attracted maximum FDI in 2007-08 were services, telecom, housing, construction activities, real estate, electrical equipment, computer software and hardware.
Mauritius continued to be the top investing country in India during 2007-08, with inflows from that country more than doubling to USD 1.6 billion from USD 578 mn in 2006-07.
Meanwhile, the minister added that the manufacturing sector, where the UK could contribute immensely, will do well. "We intend to achieve a much larger growth rate over the time to it becomes 30-33 per cent of the GDP.
The next big story in India would be manufacturing. It should have been always a big story," said Kumar.
