FDI Outflow From India Crosses $43b in 2010-11.

MUMBAI/NEW DELHI Foreign direct investment outflow from India more than doubled to $43.92 billion in 2010-11 as compared to $17.98 billion in the previous year on the back of increased loan and guarantee issued by Indian firms, official data showed.

Indian companies and individuals invested $9.35 billion in equity during the last financial year and extended $7.34 billion loans overseas, according to data released by the Reserve Bank of India (RBI) on Wednesday.

Loan guarantee issued by Indians rose sharply to $27.23 billion in 2010-11 from $7.60 billion in the previous year.

In the first two months of the current fiscal, the total outflow was $5.09 billion. It included $731.41 million of equity investment.

The RBI said it would put the data on overseas direct investment in the public domain on a monthly basis beginning July.

The initiative has been taken as part of the endeavour of the RBI and the government for wider dissemination of information and bringing about more transparency as the joint ventures and wholly-owned subsidiaries have been perceived as an effective medium of economic cooperation between India and other countries, the RBI said in a statement.

Meanwhile, under the proposed National Manufacturing Policy, India would target the sector’s growth at 2-3 per cent higher than the country’s average economic growth rate, Planning Commission member Arun Maira said on Wednesday.

“The objective of the National Manufacturing Policy is to achieve a growth rate for Indian manufacturing sector which is 2-3 per cent higher every year than India’s gross domestic product (GDP) growth rate,” Maira said at an event organised by the Federation of Indian Chambers of Commerce and Industry here.

He said greater cooperation was needed between industry and policy makers to ensure successful implementation of the proposed policy.

The government recently announced the draft of the National Manufacturing Policy that aims to create 100 million additional jobs during the next 15 years and increase the share of manufacturing in the country’s GDP to 25 per cent by 2025 from the present 16 per cent.

Source : omantribune.com