NEW DELHI: The annual inflow of foreign direct investment (FDI) into India from the U.S. is to increase to $1 billion by the year 2010, according to the projections made by the Indo-American Chamber of Commerce (IACC).

"Since liberalisation in 1991, the total inflow of FDI till date has peaked up to $5.038 billion. [The] coming years will witness increased inflow of FDI against the backdrop of solid pick-up in the Indian manufacturing and infrastructure sectors,'' the IACC President, B. Prabhakar, said in a statement here on Thursday.

The projections have been made after taking into cognizance the potential that exists for greater scope of U.S. investment in sectors such as infrastructure, IT, frontier technologies and energy, particularly in the civil use of nuclear energy in view of the imminent conclusion of the nuclear treaty with India. To catalyse the flow of FDI into the country in diverse sectors such as infrastructure, civil aviation, real estate, engineering services, outsourcing of design and knowledge-based manufacturing, the IACC is holding an investment summit here in September.

The summit, according to the statement, will be the ideal forum to discuss the future prospects of Indian investment in the U.S. This will not only help in proliferating joint ventures and technical collaborations but merchandise trade will also look up through backward and forward linkages of such investments.

At the summit, delegates from India and the U.S. are expected to deliberate on the scope of investment, glitches in attracting FDI as also the policy prescriptions that are required to accelerate the investment flow, at the meet.

Policy relaxations in certain sectors, particularly in real estate, have the potential to attract FDI, the statement said.

Policymakers from India and the U.S., representatives of large, medium and small enterprises, investment experts, bankers and consulting firms from the two countries are slated to participate in the two-day summit to help identify several frontiers areas for two-way investment.

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