New
Delhi: For the first time, the country is expected
to attract $5-billion foreign direct investment (FDI)
through the equity component alone during 2005-06.
This may mean that overall FDI inflows may easily cross
the estimated $7 billion during the year.
The
equity component of FDI inflows for 2004-05 has not yet
been compiled, since the final FDI data including details
of the reinvested earnings are still being compiled by
the RBI.
Traditionally,
the equity component of FDI inflows in India has been
around 50-55 per cent of the total inflows.
The
World Investment Report 2005 has identified India and
China as the two most attractive investment destination
among transnational corporations.
According
to the preliminary data available with the FIPB on the
basis of reports filed by companies, shows that the top
25 inflow cases received during April-July 2005 has already
touched $1 billion.
Since
most of the sectors do not require FIPB clearance and
are on the automatic route, the inflows are thought to
be higher once the FIPB data is collated along with the
data compiled with the RBI.
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