Investment Commission Report
India has achieved impressive GDP growth of over 7% per annum in the last few years.
However, sustaining growth at over 8% per annum will require a significant increase in investment levels in the economy - from approximately 30% of GDP to about 34% of GDP1.
Over the next 5 years, this translates to a cumulative investment of over $ 1.5 trillion. The report undertakes to define a strategy that could enable India to achieve this investment goal. While expansion of domestic investment is essential to achieve this goal, FDI, which has been stagnant at about $ 5 billion2 in the past, also needs to be increased significantly - the
Investment Commission has set itself the goal to increase the level of FDI to $ 15 billion by 2007-08.
To this end, 25 key sectors spanning Infrastructure, Manufacturing, Services, Natural
Resources and the Knowledge Economy have been studied. They represent a significant part of the economy, and between them would require an aggregate investment of $ 525 – $ 550 billion over the next 5 years. The sector studies also identified past investment levels, plans/ forecasts for future investment, as currently visible, and identification of the deterrents to investment.
Extensive investor interactions have provided key insights on policy and other impediments faced by investors. The Commission has interacted with industry bodies, associations,
Ministries at the Centre and State level, business delegations and companies. Interactions also included meetings with business delegations from the US, UK, Italy, Japan and the
Scandinavian countries with over 130 companies represented, altogether. Direct investor interactions (mostly personal meetings) were undertaken with an additional 64 international and domestic investors.
Arising out of these interactions, projects were identified for facilitation/ support totalling to a