Mumbai: Foreign direct investment (FDI) into the country is expected to touch $30 billion in the fiscal year ending March 2008, commerce minister Kamal Nath said.

"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," he told a business conference, adding, "The liberal FDI policy pursued by us is aimed at garnering greater foreign investment."

The minister said the Indian economy grew 9.2 per cent in the last fiscal ended March 31, 2007 in line with the government''s forecast.

"During 2006-07, the GDP growth was 9.2 per cent, with industry registering a growth of 11.3 per cent," he said.

"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 per cent of GDP," he said.