P. Chidambaram holds meeting with Investment Commission
08 Jul '06
2 min read
The Finance Minister, Shri P. Chidambaram had a meeting with the Investment Commission headed by Shri Ratan Tata, here today. The Investment Commission Summary will be available on the website of the Ministry of Finance (www.finmin.nic.in) and Press Information Bureau (www.pib.nic.in).
The following is the executive summary of the report:-
India has achieved impressive GDP growth of over 7 percent per annum in the last few years. However, sustaining growth at over 8 percent per annum will require a significant increase in investment levels in the economy - from approximately 30 percent of GDP to about 34 percent of GDP[1].
Over the next 5 years, this translates to a cumulative investment of over $ 1.5 trillion. The report undertakes to define a strategy that could enable India to achieve this investment goal.
While expansion of domestic investment is essential to achieve this goal, FDI, which has been stagnant at about $ 5 billion[2] in the past, also needs to be increased significantly - the Investment Commission has set itself the goal to increase the level of FDI to $ 15 billion by 2007-08.
To this end, 25 key sectors spanning Infrastructure, Manufacturing, Services, Natural Resources and the Knowledge Economy have been studied.
They represent a significant part of the economy, and between them would require an aggregate investment of $ 525 – $ 550 billion over the next 5 years. The sector studies also identified past investment levels, plans/ forecasts for future investment, as currently visible, and identification of the deterrents to investment.
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