The Union Cabinet on Monday abolished the 25 year old Foreign Investment Promotion Board (FIPB) that oversees Foreign Direct Investment proposals requiring the government's approval.
On February 1, Finance Minister Arun Jaitley in his budget announced the scrapping of the board, which comes under the ministry's Department Of Economic Affairs.
The FIPB was constituted under the Prime Minister's office in the early 1990s.
Sectors that are under the approval route for FDI includes defence, retail trading, pharmaceuticals, railways, chemicals, textile, airlines, among others.