In the fiscal year 2005-06 (ended on 31 March 2006) foreign direct investment (FDI) in India reached to $7.5b. In the previous fiscal year this figure was $5.3bn and thus more than 40% increase has taken place in just one year. In the current fiscal year, FDI in India is expected to grow more than 50% and according Indian Commerce and Industry Minister Kamal Nath has announced that the figure may cross $10 billion. There is no doubt that this is very good news for the Indian economy but there is still a lot of room for growth and India has a long way to go. Surely, more FDI means more generation of jobs in the Indian economy but India has push aggressively for attracting more FDI.
Well, this figure is far behind than China which received $60.3 billion of FDI in 2005. Of course, I am not saying that India can get $60 billion of FDI tomorrow but Indian government has to be aggressive in pursuing more investment especially in the manufacturing sector so that many new jobs can be created.
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