FDI inflows to touch $15 bn, says Nath

Foreign direct investment (FDI) into India is expected to touch $15 billion by the end of the present fiscal, with more overseas firms eyeing good returns from the sub-continent.

"While FDI will account for $12 billion, retained earnings (earnings ploughed back into investments) will be to the tune of $3 billion," said Commerce and Industry Minister Kamal Nath.

Speaking to reporters on the sidelines of the CII Partnership Summit here today, the minister said the overall FDI was expected to go up by 120 per cent as compared with the previous fiscal.

"Between April and November, the FDI inflow was $7.3 billion, which is 117 per cent higher than that for the corresponding period last fiscal ($3.5 billion). The inflow is expected to touch $12 billion by the end of the present fiscal," he added.

According to him, this was the fastest rate of growth in foreign investment inflows into the country. "It reflects the confidence foreign firms and companies have in India, which is emerging as a major player."

On the controversy surrounding the acquisition of land for Special Economic Zones (SEZs), Nath said prime agricultural land should not be acquired for such projects.