FDI inflows to grow by 100% this fiscal: Nath

The foreign direct investment (FDI) inflows into the country this fiscal are set to grow by around 100 per cent, crossing the $11 billion mark, as compared to $5.5 billion in 2005-06.

Giving an overview of the performance of the department of industrial policy & promotion (DIPP) during the current fiscal, Commerce and Industry minister Kamal Nath said, "Once the reinvested earnings of foreign companies, already present in India, are also taken into account in the inflows, which is a world-wide practice, the total FDI inflows in the fiscal 2006-07 could be as high as $14 billion, compared to $7.7 billion last year".

He added that the country is well on its way of reaching the export target of $120 billion set for this fiscal. "Growth in exports is needed to achieve a target of 10 per cent GDP growth," the minister said.

According to Nath, the software industry, the financial services segment and the manufacturing sector have seen huge investments.

"Investments in the manufacturing sector are first-mile investments and are likely to be followed up by further funding for completion of the projects and also for their further expansions," he added.

He also pointed out that compared to last year, the manufacturing sector had grown by 11.2 per cent in the April to October period and this rate was likely to be sustained.

"The targeted rate of growth of 12 per cent in the sector during the 11th Plan was likely to be achieved in the terminal year of the 10th Plan itself," the minister said.

According to Nath, the manufacturing sector played a major role in achieving the 10 per cent growth rate of industrial production during the April to October period this fiscal.

"The contribution of manufactured products to exports is growing with a share of about 84 per cent in total merchandise exports during the year 2005-06. These have recorded a growth rate of 22.6 per cent in 2003-04, 29.7 per cent in 2004-05 and 23.4 per cent in 2005-06," he said.

To boost industrial and export growth, the government is in the process of setting up a 1450 km-long industrial sector along the Delhi-Mumbai freight corridor. It would cross five states (Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra) and attract investments from Japan.

The infrastructure in this sector would include roads, connectivity to ports, development and expansion of ports, power projects, industrial estates and special economic zones.

"A task force comprising certain central government ministries and state departments is being constituted to work out the details of this industrial corridor," he said.

Nath also informed that in the last 12 months, over 25,000 patent applications were filed and 1,80,000 trademarks registered. According to him, India has initiated a proposal to make disclosure of the origin of genetic resources mandatory at the World Intellectual Property Organisation meetings.

The country had moved an amendment to the TRIPs agreement so as to make such disclosures mandatory in order to prevent bio-piracy and preserve traditional knowledge, he said.

The government was looking at revising the policy for agriculture export zones to boost agriculture exports, Nath said at the Federation of Indian Export Organisations (FIEO) award ceremony on Tuesday.

"Discussions are on to make AEZ policy changes to promote agriculture exports. The motive is to make the Indian farmer a part and parcel of the global agriculture trade," Nath said.