- Finance Ministry's Foreign Investment Promotion Board to be scrapped
- Move being seen as part of government's outreach to foreign investors
- FIPB cleared applications for direct investment by outside investors
Finance Minister said that FDI guidelines will be further relaxed in the coming year. Multinationals have so far remained cautious despite the PM's "Make In India" initiative with lingering concerns about bureaucratic red tape and unpredictable tax officials.
The Foreign Investment Promotion Board clears applications for up to Rs 5,000 crore for direct investment by outside investors -it's been evaluating Apple's proposal to make iPhones in India, for example.
Some sectors in India have an automatic approval route - they do not need clearances in advance from the government or the Reserve Bank of India and this applies to areas where 100% FDI is allowed- the company can be owned entirely by the foreign investor. The Foreign Investment Promotion Board handled those projects that need government approval in sectors like banking, defence and civil aviation.
FDI increased by 30 per cent about $22 billion during April-September last year.
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