Date:19/08/2006 URL: http://www.thehindubusinessline.com/2006/08/19/stories/2006081904230900.htm

Back FDI inflows rise 47% to $1.74 b in Q1

Our Bureau

"The climate here is conducive for investors, particularly from Taiwan, (South) Korea and Singapore, who are looking at sites in India to locate their manufacturing facilities."

MR KAMAL NATH

New Delhi , Aug. 18

Foreign direct investment (FDI) inflow during the first quarter of 2006-07 stood at $1.74 billion as against $1.18 billion in the same quarter last fiscal, recording a growth of nearly 47 per cent. The total FDI during the current fiscal is expected to touch $10 billion, according to the Minister for Commerce and Industry, Mr Kamal Nath.

"FDI inflows increased to $1.74 billion in April-June this year compared with $1.18 billion in the same period last fiscal and the equity component of FDI inflows in June 2006 grew by 102 per cent to $534 million as against $264 million in June last year," Mr Kamal Nath told reporters here.

Stating that most of the investments were in manufacturing and were essentially first mile investments the Minister said that investments would only increase in subsequent quarters.

New investments

The major new investments expected in the current year include General Motors' proposed plant in Maharashtra at an investment of $300 million. Japanese automobile manufacturers Nissan and Suzuki of Japan have announced a total investment of $700-800 million over the next three years, while Mitsubishi Chemicals has approved $370 million expansion plan at Haldia plant and Japanese car major Honda is investing another $200 million at Manesar, he said.

"The climate in India is highly conducive for investors, particularly from Taiwan, (South) Korea and Singapore, who are looking at sites in India to locate their manufacturing facilities," he said.