New Delhi: Industry body CII on Wednesday welcomed the government's move to abolish the Foreign Investment Promotion Board saying it will boost FDI inflows into the country.
"The momentous initiative (scrapping of FIPB), 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," CII Director General Chandrajit Banerjee said.
He said the move would take Foreign Direct Investment (FDI) inflows to greater heights, and reinforce the attractiveness of India as a viable business destination.
"The bold step of dismantling of FIPB, with only 11 sectors now needing approval, 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," Banerjee said.
Besides, the industry body said the forging of strategic partnership for defence under the 'Make in India' initiative, cleared by the Cabinet today, will give a fillip to indigenisation of India's defence industry and pave the way for greater transfer of technology from foreign firms to domestic partners.
The Union Cabinet today approved winding up of the 25- year-old Foreign Investment Promotion Board (FIPB), which has been vetting FDI proposals requiring government approval. Finance Minister Arun Jaitley in his Budget speech on February 1 had announced the scrapping of the inter-ministerial body, which comes under the ministry's Department of Economic Affairs.
FIPB was constituted under the Prime Minister's Office following economic liberalisation in the early 1990s. Currently, only 11 sectors, including defence and retail trading, require government approval for FDI.
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