Foreign investment Promotion Board, FDI

The Foreign Investment Promotion Board (FIPB) was a government body in India that was responsible for approving and facilitating foreign direct investment (FDI) into the country. The FIPB was established in 1991 as part of India’s liberalization policies and was responsible for reviewing and approving foreign investment proposals across various sectors of the economy.

The FIPB was chaired by the Secretary of the Department of Economic Affairs and included representatives from various government departments and agencies. It was responsible for reviewing and approving FDI proposals that were not covered under the automatic route, which allowed for FDI in certain sectors without prior government approval.

In 2017, the Indian government abolished the FIPB as part of its efforts to streamline the FDI approval process and improve the ease of doing business in the country. The government replaced the FIPB with a new system in which FDI proposals are reviewed and approved by the respective administrative ministries or departments, with the exception of certain sensitive sectors that still require approval from a government body.

FDI has played an important role in India’s economic development, particularly in sectors such as manufacturing, services, and infrastructure. The government has implemented a number of policies and initiatives to attract FDI, including liberalizing FDI regulations, simplifying investment procedures, and offering various incentives and tax breaks to foreign investors.

As of 2021, India is one of the top recipients of FDI in the world, with inflows of over $80 billion in 2020. The government continues to prioritize attracting FDI and has announced several new initiatives and reforms to further improve the investment climate in the country.