Foreign direct investment into the country in the first quarter of calender year 2004 increased by 71 per cent year-on-year to Rs 5076.61 crore (Rs 50.77 billion) as compared to Rs 2968.26 crore (Rs 29.68 billion) in the same period last year.
The cumulative approval of FDI between 1991 and March 2004 was Rs 292453.34 crore ($78.26 billion) and total inflows were Rs 149215.15 crore ($36.62 billion), according to the annual report of Department of Industrial Policy and Promotion, ministry of commerce and industry.
In rupee terms overall implementation rate was 51.02 per cent and in dollar terms it was 46.79 per cent.
The increase in FDI has kept pace with growth in industrial production, domestic investment and investment by foreign institutional investors.
The Index for Industrial Production grew 6.9 per cent in 2003-04 as compared to 5.7 per cent in 2002-03 and 2.7 per cent in 2001-02.
The report says that all three sectors - mining, manufacturing and electricity - have shown positive growth rates in FY04.
Quoting Centre for Monitoring Indian Economy, the report says that in 2003-04 resources raised by the corporates from the primary market were Rs 55,552.03 crore (Rs 555.52 billion).
The investment by FIIs in 2003-04 also boomed and touched $9.9 billion, as compared to $562 million in 2002-03.
Outlining the policy initiatives in 2003-04, the report says that FDI policy was liberalised with regard to technology collaboration, and royalty payments of up to eight per cent on exports and five per cent on domestic sales was allowed without any restriction on the duration.
FDI policy has been further liberalised in petroleum and banking sectors and printing of scientific and technical journals. Foreign banks have been allowed to set up 100 per cent subsidiaries in India provided they are regulated by a supervisory authority in the home country and meet Reserve Bank of India's licensing criteria.
The report also recalled removal of 75 items from the list of products reserved for small sctor and enhancing of investment limit from Rs 1 crore (Rs 10 million) to Rs 5 crore (Rs 50 million) for some products reserved for the SSIs.