FDI investment from Australia reflect neither the potential of Australia to invest, nor the absorptive capacity of India. He urged the Australian Investors to explore the natural complementarities between the two economies to achieve optimum levels of economic engagement between the two countries.
Shri Bansal said that investment by Foreign Institutional Investors in Indian stock markets also reaffirms the confidence which the investors have in India's potential.
The FII investment was 10.9 billion US dollars in the year 2003-04, 8.6 billion US dollars in the year 2004-2005 and 9.2 billion US dollars in the year 2005-06. In 2006-07 the net investments were US$ 6.14 billion upto Feb. 2007.
To further widen and diversity the investor base, the limit of FII investment in corporate debt in India has been increased from US$ 1.5 billion to US $ 2 billion in April, 2006.
Investment cap on Government securities has also been increased from US$ 1.5 billion to US$ 2 billion in April 2006. This positive trend reflects the strong economic fundamentals of the country as well as the confidence of the foreign investors in the growth and stability of the Indian market.
Shri Bansal added that India's GDP has shown a growth rate of 9.4% in 2006-07. Higher domestic savings and accelerated FDI inflows have contributed to this growth in investment. He emphasized that that India offers one of the safest investment opportunities in terms of country risk also.
Press Information Bureau Government of India
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