Finance Minister Arun Jaitley on Wednesday announced Foreign Investment Promotion Board. Jaitley said that this was being done to introduce further FDI reforms. What is the FIPB and what was its role.
This is the designated institution which considered FDI proposals that require government approval. It also grants composite approvals involving foreign investment/ foreign technology. According to Indianeconomy.net, as per the June 2016 FDI policy revision, the FIPB could give recommendations of FDI proposals below Rs 5,000 crore to the minister of finance for consideration.
As most of the FDI proposals are below Rs 5,000 crore, it is well understood that almost all FDI proposals are examined by the FIPB.
The function of the FIPB was to to quickly approve the foreign investment proposals and also review FDI policies and communicate with other agencies to set up guidelines that are transparent and which encourage FDI into the various sectors.
The FIPB would also overlook the implementation of the various proposals those have been approved by it. The FIPB would also communicate with government, non-government and industry in order to increase the flow of FDI onto the country.