Announcing the abolition of the Foreign Investment Promotion Board (FIPB) during his budget speech, Finance Minister Arun Jaitley on Wednesday said that the alternative mechanism will be far simpler.
"If there is an Information & Broadcasting Ministry or any other ministry related proposal, the ministry concerned can look into it. It is one of the possible mechanisms that can be considered," Jaitley told media persons at a post-budget press conference.
"It could be the ministry concerned's mechanism that can be considered. The alternative mechanism will be far simpler," he added.
Jaitley, in the budget speech, said that with the government undertaking substantive reforms in the Foreign Direct Investment (FDI) policy, more than 90 per cent of the total inflows are now through the automatic route.
"The Foreign Investment Promotion Board (FIPB) has successfully implemented e-filing and online processing of FDI applications. We have now reached a stage where FIPB can be phased out," he said.
"We have, therefore, decided to abolish the FIPB in 2017-18. A roadmap for the same will be announced in the next few months," he added.
In the meantime, further liberalisation of the FDI policy is under consideration and necessary announcements will be made in due course, the Finance Minister said.
India Inc lauded the government's move to phase out FIPB and added that it would lead to further ease of doing business.
Associated Chambers of Commerce & Industry of India (Assocham) President Sunil Kanoria said: "Abolition of the FIPB is a great signal to the foreign investors about furthering of reforms and ease of doing business in India."
Naushad Forbes, President, Confederation of Indian Industry (CII), said: "The economic reforms agenda continues at a rapid pace with the abolition of FIPB."
--IANS
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