Government Targets $ 10 Billions FDI in 2006-07.
Speaking to the Indian Media in Davos the Minister for Commerce and Industry, Mr. Kamal Nath said," the Government is targeting an overall foreign direct investment (FDI) inflow of $10 billion during the next fiscal and expects around $7.5 billions in the current financial year".

FDI inflow till the month of October this fiscal stood $2.59 billion in the country. With regards to the new FDI policy that was announced on Tuesday, the minister said it was solely for the purpose of employment generation.

Creation of 100,000 jobs
He said that there would be creation of 100,000 jobs. There would be essentially creation of employment for people in the 22-24 age group, especially school dropouts.

The Government has approved 51 per cent FDI in basically multi-product, single brands, and this would address the critical employment issues facing the country.

FDI in India Is More Domestic Market Driven
Mr. Kamal Nath pointed out that in India, FDI is more domestic market driven; hence single brand retailers would like to come into the country.

In the World Economic Forum session, Mr. Kamal Nath said the hub of world economic activity was shifting from the Atlantic rim to the Indian Ocean and India's technological skills, along with its attractiveness as a manufacturing center, are fast making it the hub of not only information technology (IT)-enabled services but also manufacturing.

Industrial growth In India
India was witnessing a consistent industrial growth of 12 per cent for the past few years and the trend was accelerating.

Mr. Kamal Nath said the way forward for India was to capture the potential market through value adding in different fields, especially engineering goods, pharmaceuticals, chemicals, biotechnology and even sectors such as fashion, lifestyle products and leather goods.

He added India's leadership in the world's diamond market and that cut and polished diamonds from the country accounted for approximately 85 per cent of the global markets in volume terms.

Workforce In The Developing Nations
He focused the cheaper workforce in the developing nations as the population in the developed world was aging, hence the workforce, who would comprise not just labour but skilled and technologically qualified professionals as well, would come from the developing countries. He emphasized that India's unique combination of IT, biotech and pharma manufacturing base would mean that it would not only be a business process outsourcing destination but would climb up the value chain to become a knowledge process outsourcing and an engineering process outsourcing destination in the world.

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