India Will Achieve its FDI Target This Year

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Oct. 14 – Even as liquidity in the Indian economy is drying up, the government has assured the people that enough money is flowing in. Kamal nath, India's commerce and industry minister, announced that while export grew to 30 percent in October, FDI will rise above US$35 billion by the end of this year, meeting the governments target. Earlier he had mentioned that during April-August this year, India had already recieved US$14.6 billion in FDI.

"The huge growth in FDI in India despite global economic slowdown shows how sound and resilient our economy is," Kamal Nath said, adding there was nothing to worry at all. "In August, FDI growth was 124 % and 219% in July this fiscal, which is an indicator to the fact that India with its strong fundamentals can tide over global financial crisis, "he told the Times of India, hinting that India is still an attrctive invetsment destination.

Mr Nath told the Economic Times that FDI increase must be seen as a positive sign in the context of global slowdown. The manufacturing sector received US$5 bn during April-August, an year-on-year rise of 41 percent.

Major invetsments this year involved the Royal bank of Scotland buying shares in Reliance Ports and Terminals for US$382 million and DE Shaw Composite Investment pouring in US$384 million in DLF Assets.