The FDI approvals in future will be examined by the concerned Ministries and sectoral regulators after the abolition of Foreign Investment Promotion Board (FIPB). Finance Minister in his budget speech has indicated winding up of the operations of FIPB as nearly 92% of the FDI proposals are now made through automatic route.
The FIPB was created in 1996 as the designated institution for considering FDI proposals that require government approval. It also grants composite approvals involving foreign investment/ foreign technology. End of FIPB also indicate the progress of foreign investment reform as well as depth of opening up of the economy to foreign investors.
Still, nearly eight per cent of FDI proposals need approval. Here, according to the Commerce Minister Ms Nirmala Sitharaman, the concerned Ministries will take responsibility. Previously, FIPB considered investment proposals up to Rs 5000 crores.