FDI doubles in 7 months

Foreign Direct Investment inflows into India during the first seven months of 2004 nearly doubled to $2.06 billion from $1.08 during January-July 2003, according to data compiled by the Department of Industrial Policy and Promotion.

Inflows of FDI (net of American Depository Reciepts\Global Depository Reciepts) in rupee terms during the seven- month period also registred a significant jump of nearly 90 per cent at Rs 9,503.42 crore (Rs 95.03 billion) from Rs 5,003.14 crore (Rs 50.03 billion) during January-July 2003.

While the inflows registered an upward trend, the number of FDI cases routed through the Secretariat for Industrial Assistance witnessed a decline.

The total number of such cases were 4 during January-July 2004 as compared to 54 cases in the same period last year, reflecting a decline of 92.6 per cent.

Approvals through RBI, however, increased marginally to 545 from 437 during January-July 2004. Approvals through the Foreign Investment Promotion Board, which includes approvals for Euro issue also increased marginally to 983 from 882 during the seven-month period in 2003.

Foreign Collaboration Approvals also declined marginally to 1060 during January-July 2004 from 1073 in the corresponding period a year ago.

The decline was on account of a decline in the number of foreign technology agreement cases approved at 77 as compared to 191 in the corresponding period in 2003.