News: 'India expects major investment from US, Japan'

(RTR 12/09/2006) New Delhi - India is expecting new major foreign investments from Japanese and United States firms in the near future, Finance Minister Palaniappan Chidambaram said on Tuesday.

India wants to attract more money from overseas to boost economic growth to 10 per cent in the coming years, from 8.4 per cent estimated in 2005/06. Foreign direct investment inflows were at $7.7 billion in the fiscal year to March 2006.

"I am told, foreign investors in U.S. have lined up India specific funds," Chidambaram said, but did not give any details.

A Japanese delegation will visit India soon to discuss projects, he said.

Industry Minister Kamal Nath said in August that General Motors Corp., Suzuki Motor , Nissan Motor Co., Honda Motor Co. Ltd. and Mitsubishi Chemicals were planning major investments in India.

Nath said General Motors was planning to set up a $300 million car manufacturing facility in the western state of Maharashtra.

Suzuki and Nissan have announced plans to jointly produce half a million passenger cars and mini-vans at a plant to be built near Delhi at a cost of $700-800 million.