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The government will come out with a roadmap in the next few weeks to further simplify the FDI approval process by abolishing the FIPB, Economic Affairs Secretary Shaktikanta Das said today.
"The process of FDI approval is being simplified further by dismantling the FIPB and delegating the power to ministries or the regulators as the case may be...The necessary formal proposals will be considered by the government very shortly," he said at an even here.
"...The procedure which will be followed after dismantling FIPB will be announced... It's a matter of few weeks," he said.
The online interface for FDI approval that is the portal of Foreign Investment Promotion Board (FIPB) will continue for greater transparency and speed, he said.
"Who is going to control it who is going to take final decision that will be spelt out once the government takes the final decision," he said.
The government had constituted a group of officers from Department of Economic Affairs, Department of Industrial Policy and Promotion (DIPP), External Affairs and representatives from regulators like the RBI and Sebi.
The Group has finalised the modalities for successor arrangement post abolition of FIPB.
Finance Minister Arun Jaitley in the Budget speech last month had announced abolition of FIPB and form a new mechanism that could include approvals by the ministries concerned for expeditious clearance of foreign investment proposals.
"We have now reached a stage where FIPB can be phased out. We have therefore decided to abolish the FIPB in 2017-18. A roadmap for the same will be announced in the next few months.
"In the meantime, further liberalisation of FDI policy is under consideration and necessary announcements will be made in due course," he had said.
Terming India as one of the most open countries in the world in terms of FDI inflows, Das said, the government is committed to provide an overall macro economic and fiscal environment which is prudent and strong.
"Our macroeconomic fundamentals are quite strong, overall fiscal also remains strong and the policy adopted are very prudent," he said.
India has witnessed a 38 per cent surge in foreign capital inflows during first half of 2016-17 when world over FDI flows were declined 5 per cent, he said.
In the coming year, he said, one expects a lot of investments to come into India from both domestic and foreign sources.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)