India's potential to attract over $100 billion foreign direct investment in the next five years could raise the GDP growth by at least 1.5-2.0 per cent, a report by American Chamber of Commerce has said in New Delhi. "Attracting $100 billion in FDI will increase the total investments as a percentage of GDP by 4.5 per cent. We estimate, this will increase the GDP growth rate by at least 1.5-2.0 per cent," the chamber said in the report.
The total FDI potential include $43 billion in the domestic sector, $11 billion in export-oriented sectors and $49 billion through privatisation, it said.
The report said four domestic sectors-energy, telecom, financial services and food and beverages-could attract as much as 50 per cent of total FDI expected to flow in.
Energy sector could attract $12 billion, $4.5 billion could come into telecom, $3.6 billion in financial services, and food and beverage sector could attract $1.5 billion worth FDI, the report added.
During the last nine years, India attracted only $15 billion in domestic sector due to sectoral policy, red tape and restrictions on foreign ownership, it said.
About privatisation, it said the Cabinet Committee on Disinvestment should target around 30 public sector units in a year for making a quantum jump from five billion dollar disinvestment proceeds upto 2000. Bureau Report