Presenting the Union Budget 2017, Finance Minister Arun Jaitley said that the Foreign Investment Promotion Board (FIPB) will be abolished. The decision has been taken against the backdrop of the government’s attempts to improve the ease of doing business in India.
Nearly 90 percent of foreign direct investment now comes in via the automatic route, reducing the need for FIPB, said Jaitley.
The FIPB is a national agency of the Government of India and deals with the clearance of foreign investment proposals that do not fall under the automatic route. The government did not specify how investment into sectors, where there are restrictions on foreign investment, would be dealt with once the FIPB is done away with.