Mumbai, Apr 6 (UNI) The Centre has undertaken a micro planning study on actual utility of foreign direct investment(FDI) out of total inflow in the productive sector of the economy, according to Union Secretary, Ministry of Commerce and industry, Dr Ajay Dua.
Addressing a press meet on the occassion of releasing a study report on India's manufacturing sector, Dr Dua said that the study would get into the micro factors as to what percentage of FDI had actually come into the country in various segment of the industry.
Currently, the flow of FDI is announced as per the MoU signed between the Indian and foreign partners for either setting up or expanding the manufacturing base in India. But no statistics are readily available in terms of actual deployment of FDI in the projects.
The study is being carried out in light of the speedy growth of FDI flow into the country in the last couple of years following opening up the additonal sectors of the industry. The inflow of FDI which was about USD 5.3 billion in 2004-05, is expected to be around USD 7 billion in 2005-06.
By end of current fiscal ending March 31, 2007, the FDI figures might go upto USD 10 billion, Dr Dua said.
CII President, Yogesh Deveshwar said that the quantum of FDI flow into the doemstic economy would have greater, had the tax regime and labour rules in India been more liberalised with improved infrastructural facilities.
While, the country is embarking upon on a more liberalised regime, a close watch should be taken in terms of utility of finite natural resources and quality manpower so that the domestic economy can have the opportunity to sustain its growth on a longer term basis, Mr Deveshwar said.
Extending the FDI utility in rural sector would provide the much watned sustainable growth of the domestic economy.
More UNI GC PP SKB1926