Budget 2017: FIPB abolished but reform to continue

NEW DELHI: The

Foreign Investment Promotion Board

(

FIPB

) will be abolished and a new framework will be created, said finance minister Arun Jaitley today, while presenting Budget 2017.

“We will continue with the reform agenda in this area, though,”Jaitley said.

The FIPB offered a single window clearance for applications on Foreign Direct Investment (

FDI

) in India that are under the approval route. The sectors under automatic route did not require any prior approval from the FIPB and are subject to only sectoral laws.

Jaitley also announced further reforms in FDI policy.

"In order to encourage greater fund flows into the economy, the FM has announced abolition of the FIPB. While a clear policy outline is yet to be revealed, this is another positive step to liberalize FDI policy framework and ease regulatory hurdles in attracting investments," said Anshuman Magazine, Chairman India and South East Asia, CBRE.




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