FDI equity flows recorded 450% increase in Feb'07

New Delhi, Apr 13 (UNI) The manufacturing sector in India grew by a record 12.3 per cent in February 2007, and the cumulative industrial growth in the 11-month period, (April 06 to February 07) has been 11.1 per cent over the corresponding period of the previous year.

This is the first time that Industrial growth has crossed the 11 per cent mark in the last decade.

Commerce and Industry Minister Kamal Nath has said that the record manufacturing growth is significant in the context the high priority being accorded by the government to manufacturing as a source of employment generation.

Meanwhile, foreign direct investment (FDI) inflows (equity only) in February 2007 amounted to 698 million dollars, compared to only 127 million dollar in February 2006, a huge increase of 450 per cent.

Cumulatively, from April 2006 to February 2007, an amount of 11.89 billion dollars have come in equity, compared to 4.31 billion dollars during the 11 months of the previous year.

This marks a growth of 176 per cent in dollar terms in FDI inflows into India cumulatively.

As per the Quick Estimates of Industrial Production, manufacturing sector grew by 12.3 per cent in February 2007. As a result, during April 2006 to February 2007, there was a 12.1 per cent rate of growth in the Manufacturing Sector during the 11-month period.

''This augurs well for the beginning of the 11th Plan, which aims to achieve a growth of 12 per cent per annum in Manufacturing during the entire Plan period,'' Mr Nath said.

UNI