Kamal Nath invites UAE to invest in India - says FDI inflows during 2006-07 May touch $ 15 billion

Inviting the United Arab Emirates (UAE) to invest in India, Shri Kamal Nath, Minister of Commerce & Industry, said today that Dubai’s expertise in creating world-class infrastructure was well known and this is where India offered a huge potential, with investment requirement in India’s infrastructure sector estimated at US $ 350 billion during the next 5 years.

Addressing a Business Meeting with Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, Shri Kamal Nath indicated that foreign direct investment (FDI) inflows into India was likely to touch US $ 15 billion during 2006-07. He also said that India’s trade with the UAE had more than doubled in the last few years. "Indeed, it is a matter of pride for us that India has emerged as Dubai’s largest export destination ahead of Pakistan, Iran and Kuwait, and trade between India and Dubai was pegged at nearly 11 billion dollars in 2006", he added.

"Advantage India stems from various factors. I would like to start with the macro economic indicators. We have been able to sustain high rates of economic growth averaging over 8% in the last three years. The GDP growth during the current fiscal year is projected to be 9.2%. We are targeting growth rates of 9% in the next five-year plan, commencing from 2007-08. Our industrial production has grown over 10% and the manufacturing production registered a growth of 11.5% during the current year. The services sector growth is projected at about 11.2 % during the current fiscal. FDI equity flows which was only US$ 5.5 billion last year grew by 100% in the 1st half of this year. FDI is expected to touch US$15 billion during 2006-07. Foreign exchange reserves are over US$ 190 billion. Most of these indicators sketch the healthy macro economic fundamentals of the economy", the Minister said.

Mr. Mohd. Khalfan Bin Kirbash, Minister for Economy and Industry, UAE, is scheduled to have a separate bilateral meeting with Shri Kamal Nath later this afternoon.

Source : Press Information Bureau

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