NEW DELHI: The Central Government is confident that foreign direct investment (FDI) inflows during 2006-07 will cross $11 billion from $5.5 billion achieved last year.

According to Commerce and Industry Minister Kamal Nath, there has been a consistent growth in FDI inflows in the current fiscal and these have already touched $6.1 billion during April-October, a rise of 134 per cent over the previous year.

Speaking to reporters here on Tuesday, he said FDI inflows in October were estimated at $1.7 billion as against $400 million in the same month last year. "Once the reinvested earnings of foreign companies already present in India are also taken into account in FDI inflows, the total FDI inflows in 2006-07 can be as high as $14 billion compared to $7.7 billion last year,'' he said.

In this context, Mr. Kamal Nath said there had been huge investments coming in the software industry, financial services and manufacturing. The manufacturing investments are the "first mile investments," he said, insofar as these are likely to be followed up by further investments to complete the projects and also for their expansion. On industrial production having risen by over ten per cent during April-October 2006, he said a major highlight had been the high level of growth in the manufacturing sector at 11.2 per cent. There were indications that this rate would be improved so that the target of 12 per cent for the Eleventh Plan was likely to be achieved in the terminal year of the Tenth Plan.

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