Supreme Court: Rape Conviction Possible Without S.376 Charge if POCSO Case Fails on Age Proof  ||  SC: Mere Long Possession Can't Establish Adverse Possession; Hostile Intent is Required  ||  Supreme Court Finds Gaps in FSSAI’s Proposed Warning Labels for Foods High in Fat, Sugar and Salt  ||  Supreme Court Quashes ITS Officer's 'Deadwood' Retirement, Orders Rs. 15 Lakh Payment  ||  Uttarakhand HC: District Magistrate to Establish Public Helpline within 24 Hrs amid Water Pollution  ||  Allahabad HC: Custodial Violence and Molestation Are Crimes, Not Police Duty  ||  Gujarat High Court: Bombay Public Trust Registration is Covered by Section 43 of the Waqf Act  ||  J&K&L HC: Advocates not Above Law, No Immunity from Lawful Police Inquiry  ||  Gauhati HC: Talaq-e-Hasan Valid, Requires Registration under Assam Marriage Act  ||  NCLAT: NCLT President Empowered to Transfer Cases from One Bench to Another    

Cabinet approved the proposal for scrapping of FIPB - (24 May 2017)

Commercial

Union Cabinet has approved phasing out of 25 years old Foreign Investment Promotion Board. With this decision, administrative Ministries/Departments will be allowed to process applications for FDI requiring government approval. Decision is based on hope that, scrapping of FIPB would help in ease of doing business and enhance FDI inflow. More than 90% of total FDI inflows are coming from automatic route. However, FDI proposals above Rs 5,000 crore would continue to come under the purview of Cabinet Committee on Economic Affairs (CCEA). As of now, only 11 sectors, including defence and retail trading requires government approval for foreign direct investment (FDI). These 11 sectors that require approval would be dealt directly by concerned ministry by following standard operating procedure approved by Cabinet. FIPB will be replaced by a new mechanism. However, proposals related to security or sensitive sector, would require approval of Home Ministry. Further, proposal pending with FIPB would go back to ministries concerned.

Foreign Investment Promotion Board (FIPB), is an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval. Extant of FDI Policy, Press Notes and other related notified guidelines formulated by Department of Industrial Policy and Promotion (DIPP) in Ministry of Commerce and Industry are bases of FIPB decisions. In the process of making recommendations, FIPB provides significant inputs for FDI policy-making. FIPB was initially constituted under Prime Minister's Office (PMO) in wake of economic liberalization. A 3-tier approval mechanism approves FIPB’s Recommendations consisting of FIPB as a committee of senior officials to examine and make recommendations; Empowered Committee on Foreign Investment (ECFI) chaired by Finance Minister for deciding on recommendations of FIPB for projects in which total investment in project was up to Rs. 300 Crore; and Cabinet Committee on Foreign Investment (CCFI) for deciding on recommendations of FIPB for projects in which total investment was more than Rs. 300 Crore.

Henceforth, work relating to processing of applications for FDI and approval of Government thereon under extant FDI Policy and FEMA, shall now be handled by concerned Ministries/Departments in consultation with Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce, which will also issue Standard Operating Procedure (SOP) for processing of applications and decision of Government under extant FDI policy. At present, applications are considered by FIPB in Department of Economic Affairs (DEA), Ministry of Finance consisting of various Secretaries of Government of India for making recommendation on FDI applications. After this decision of cabinet, it would be handled independently by Administrative Ministries as per Sector.

Tags : FIPB   ABOLITION   APPROVAL  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved