Foreign Investment Promotion Board: Latest Developments

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Finance Minister Arun Jaitley has announced that the Foreign Investment Promotion Board (FIPB), which vets and approves foreign direct investment (FDI) proposals not cleared through the automatic route, will be abolished in 2017-18.

There would also be further liberalisation of the FDI policy and necessary announcements will be made in due course.

More than 90 per cent of the total FDI inflows are now through the automatic route. The FIPB has successfully implemented e-filing and online processing of FDI applications.

FDI had increased from ₹ 1,07,000 crore in the first half of last year to ₹ 1,45,000 crore in the first half of 2016-17. This marks an increase of 36 per cent, despite 5 per cent reduction in global FDI inflows.

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