<p>After deciding to abolish the Foreign Investment Promotion Board (FIPB) in the wake of over 92% overseas investments now coming through automatic route, the government on Monday said the remaining investments will be cleared by the departments concerned and sectoral regulators.<br /><br /></p>.<p>“The whole idea was to make doing business in India easier. The logical conclusion was to wind up FIPB, because over 92% of foreign direct investments are coming though the automatic route,” Commerce and Industry Minister Nirmala Sitharaman said.<br /><br />She said for the remaining 6% to 7%, the ministries or a regulator for the department concerned was sufficient to take care of the investment.<br /><br />Finance Minister Arun Jaitley had in the Budget 2017-18 announced abolishing FIPB. After that the government said it hoped to put in place a new mechanism to replace FIPB soon.<br />FIPB offers single-window clearance for applications on FDI in India that are under the approval route. <br /><br />The sectors under automatic route do not require any prior approval and are subject to only sectoral laws. Asked whether line ministries will be enough to take a call on foreign investments not routed automatically, Sitharaman said, “ministries of sectoral heads”.<br /><br />FIPB’s mandate was to recommend investments of up to Rs 5,000 crore to the finance minister. FDI beyond the cap needed cabinet committee on economic affairs approval.<br /></p>
<p>After deciding to abolish the Foreign Investment Promotion Board (FIPB) in the wake of over 92% overseas investments now coming through automatic route, the government on Monday said the remaining investments will be cleared by the departments concerned and sectoral regulators.<br /><br /></p>.<p>“The whole idea was to make doing business in India easier. The logical conclusion was to wind up FIPB, because over 92% of foreign direct investments are coming though the automatic route,” Commerce and Industry Minister Nirmala Sitharaman said.<br /><br />She said for the remaining 6% to 7%, the ministries or a regulator for the department concerned was sufficient to take care of the investment.<br /><br />Finance Minister Arun Jaitley had in the Budget 2017-18 announced abolishing FIPB. After that the government said it hoped to put in place a new mechanism to replace FIPB soon.<br />FIPB offers single-window clearance for applications on FDI in India that are under the approval route. <br /><br />The sectors under automatic route do not require any prior approval and are subject to only sectoral laws. Asked whether line ministries will be enough to take a call on foreign investments not routed automatically, Sitharaman said, “ministries of sectoral heads”.<br /><br />FIPB’s mandate was to recommend investments of up to Rs 5,000 crore to the finance minister. FDI beyond the cap needed cabinet committee on economic affairs approval.<br /></p>