FDI Approvals in 2003

The FDI Approvals in 2003 maintained its growth momentum from the preceding year and continued to the year 2003. The cumulative inflow of FDI in India during the year 2003 was to the tune of US $ 4.27 billion. The main industries that drew such FDIs were Fuels, Telecommunication, Transportation, Electrical equipments (Including Computer hardware and electronics) and Metallurgical industry. This facilitated the Indian economy to grow by 6.9% during the said period.

Snapshots of the FDI Approvals in 2003:

The cumulative inflow of FDI in India during the year 2003 was to the tune of US $ 4.27 billion. The main countries contributing to the bulk of such investments were Mauritius, USA,Netherlands, France, Germany, Japan, UK, Singapore, South Korea and Switzerland. The Indian states which received the major portion of such FDI were Maharashtra, Delhi, Karnataka, Tamil Nadu and Gujarat. These five Indian states attracted more than 48% of the total FDI during the said period.

The main sectors, which attracted the main bulk of such FDI in India are -

Fuels - Power and oil refinery
Telecommunication - including radio paging, cellular mobile and basic telephony
Transportation
Electrical equipments - Including Computer hardware and electronics
Metallurgical industry
Services sector - including financial and non-financial sector
Chemicals - other than fertilizers
Food processing
Hotels and tourism
Paper and pulp
Other sectors

FDI Approvals in 2003 in India and its significance with respect to Indian economy are as follows:

The Indian economy grew by 6.9%
Year-on-year Wholesale Price Index-based inflation stood at 4.5%
The growth rate of agriculture and allied sector stood at 7 %
The Indian industry growth rate stood at 6.4%
The services sector growth rose to 7.9%
Growth in the industry and services sectors was due to the rise of industries like manufacturing, public utilities, the trade, hotels, transport and communication, and community, social and personal services
The Gross Domestic Product grew by 6.4% in the first half and 6.9% in the second half
Reverse-repo-rate was hiked to check liquidity overhang
Exchange rate of the Indian rupee was flexible during the period
India's foreign exchange reserves continued to rise
Interest rates on deposits like non-resident Indians' (NRI) deposits went down
Moderate growth of 23% was registered in net invisibles surplus
Export of Software services grew by 28.7%
Merchandise export growth stood at 25.6% and the main drivers of growth were sectors like engineering goods, gems & jewelery, textiles, chemicals and related products, and petroleum products
India increased its trades and took an active participation with the World Trade Organization negotiations
A substantial number of bilateral trade agreements were entered into