The government seeks to double the FDI inflow to $30 billion this fiscal in order to maintain a growth rate of 9 per cent per annum over the next five years.
"While FDI equity flows were $5.5 billion in 2005-06, it increased almost three times to $15.7 billion in 2006-07. We have set a target of $30 billion in 2007-08," Union Minister for Commerce and Industry Kamal Nath said on Tuesday at the 3rd India-Gulf Corporation Corporation (GCC) Industrial Forum said in Mumbai.
Nath said resources for these investments are expected to come from both domestic and foreign sources.
The economy grew by 9.2 per cent in the last fiscal.
"To achieve a growth rate of 9 per cent per annum over the next five years, starting 2007-08 we need an investment rate of 35.1 of GDP," the minister added.
Nath also said that the government was in the process of negotiating a free trade agreement with GCC and expected that the talks would conclude successfully very soon.
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