FDI inflow bode well for India: World Bank official

CHENNAI: The steady stream of Foreign Direct Investments flow into India and attempts by Indian companies to invest abroad bode well for India, World Bank's Development Prospects Group's International Finance Manager, Mansoor Dailami on Friday said.

"I think we are not going to see one side of FDIs, it is going to be both sides, as I have been seeing it in the past couple of years" he told reporters. It is good for India as it is going to be both ways, he said.

"If you look at the size of the corporate sector in India, India as an economy has tremendous potential in attracting more FDIs," he said.

In response to a query, Dailami also said the country has huge potential to sustain a growth rate of 8 per cent and more for a longer time.

On whether the Sovereign Wealth Fund can also be used as a political instrument, he said, "It will have to be a political instrument".

"I think it makes eminent sense for many central banks that they have large amount of reserves to put the size of the capital as a separate entity, and let that entity to manage the capital. We have seen Korea has done it, China has done it, Brazil is talking about that while Abu Dhabi is the biggest which has done an estimate of $900 billion" he said.