What is FIPB?
FIPB is a Board established by the Government of India to evaluate foreign direct investments that don’t fall into the automatic route category. The full form of FIPB is the Foreign Investment Promotion Board. The FIPB is the only organisation in India that deals with foreign investments and other investments. The Indian government established it with the primary objective of conducting promotional activities to attract more foreign investment and promote Indian industries. The goal is to facilitate the inflow of investments from around the world into India.
Arun Jaitley, the then-finance minister, abolished the FIPB in 2017 to encourage the inflow of funds and improve transparency in the system through FDI. In 2017, the board was abolished before the release of Jaitley’s budget. The government claimed that it was eliminating a layer of bureaucracy that required government approval, which may have been delaying the increase in foreign direct investment. The functions and duties of the FIPB have been replaced by the FIFP (Foreign Investment Facilitation Portal).
Table of Content
- Roles of FIPB
- Functions of FIPB
- Need of FIPB
- Advantages of FIPB