CII Welcomes the Cabinet Decision to Abolish Foreign Investment Promotion Board (FIPB)
Statement from Mr. Chandrajit Banerjee, Director General, CII
CII strongly welcomes the landmark decision to abolish the Foreign Investment Promotion Board taken by the Cabinet today. The bold step of dismantling of FIPB with only 11 sectors now needing approvals, along with decisions such as a single window to clear FDI proposals, reflect the Government’s commitment to reforms and reassures investors that Ease of Doing Business remains a high priority. The momentous initiative, which is a follow-up of the measure announced in the Union Budget, would streamline the process of FDI approvals and thereby boost FDI flows into the country, adding to growth and employment.
Already, the government has among the most liberal FDI regimes in the world which has greatly improved the investment climate. As a result, for the last three years, FDI has been on the ascendant and is setting new records. Today’s reform would take FDI inflows to greater heights and reinforce the attractiveness of India as a viable business destination.
Similarly, the forging of Strategic Partnership for Defence under the Make in India Initiative, cleared by the Cabinet today, would give a fillip to indigenisation of our defence industry and pave the way for greater transfer of technology from foreign firms to domestic partners in India. Today’s decisions affirm that India is open for business from the world, and would contribute greatly to investments and development of the country.
