News: It’s a dollar downpour as FDI, exports soar
(DNA 18/08/2006) New Delhi - The inflow of greenbacks is turning torrential - not just through investments, but also through export earnings.
Sample this: foreign direct investment inflows into India in the first quarter (Q1) of 2006-07 touched $1.74 billion, a record 47% increase over the $1.18 billion that came in the Q1 of 2005-06, according to figures released by the industry ministry.
And savour this: India exported $37.7 billion worth of goods in April-July 2006, 34% more than it did in April-July 2005 (See table).
In June alone, India’s export earnings grew a massive 40%, the highest since June 2005 when they grew 41.5%.
The $1.74 billion FDI in Q1 is just the beginning, commerce and industry minister Kamal Nath promised.
There’s a slew of mega investments that are slated to come in .
Not all the actual inflows from these investments will be in this year, though; they are typically staggered over the life of a project.
The electrical equipment sector is pulling in the maximum greenbacks. The sector, which includes computer software and electronics, took 17.3% of total inflows as of April.
Telecommunications (radio paging, cellular mobile, basic telephone services) follows, with 11.32%.
Other sectors in the top 10 are services (financial and non-financial), transportation, fuels (power and oil refinery), chemicals, food processing industries, drugs and pharmaceuticals, cement and metallurgical industries.
Nobody is very surprised by the export performance. It is, says Shrawan Nigam, former economic adviser to the government, to be expected and is a continued reaffirmation of the competitiveness of Indian industry, specifically manufacturing.
Indeed, manufactured goods account for 70% of India’s exports.
There’s a positive sign for domestic industry in the trade data released today by the commerce ministry - the 35.8% rise in non-oil imports.
Capital goods account for the bulk of these - 13.4% of total imports and 20% of non-oil imports, which makes this the single biggest import category.
With domestic production of capital goods also in the 20% range, it’s a clear sign of a positive investment scenario.
Clearly, there’s a lot going right for India. For the moment.
Sample this: foreign direct investment inflows into India in the first quarter (Q1) of 2006-07 touched $1.74 billion, a record 47% increase over the $1.18 billion that came in the Q1 of 2005-06, according to figures released by the industry ministry.
And savour this: India exported $37.7 billion worth of goods in April-July 2006, 34% more than it did in April-July 2005 (See table).
In June alone, India’s export earnings grew a massive 40%, the highest since June 2005 when they grew 41.5%.
The $1.74 billion FDI in Q1 is just the beginning, commerce and industry minister Kamal Nath promised.
There’s a slew of mega investments that are slated to come in .
Not all the actual inflows from these investments will be in this year, though; they are typically staggered over the life of a project.
The electrical equipment sector is pulling in the maximum greenbacks. The sector, which includes computer software and electronics, took 17.3% of total inflows as of April.
Telecommunications (radio paging, cellular mobile, basic telephone services) follows, with 11.32%.
Other sectors in the top 10 are services (financial and non-financial), transportation, fuels (power and oil refinery), chemicals, food processing industries, drugs and pharmaceuticals, cement and metallurgical industries.
Nobody is very surprised by the export performance. It is, says Shrawan Nigam, former economic adviser to the government, to be expected and is a continued reaffirmation of the competitiveness of Indian industry, specifically manufacturing.
Indeed, manufactured goods account for 70% of India’s exports.
There’s a positive sign for domestic industry in the trade data released today by the commerce ministry - the 35.8% rise in non-oil imports.
Capital goods account for the bulk of these - 13.4% of total imports and 20% of non-oil imports, which makes this the single biggest import category.
With domestic production of capital goods also in the 20% range, it’s a clear sign of a positive investment scenario.
Clearly, there’s a lot going right for India. For the moment.
posted by InCar Group Press Room at 22:34
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