Pm Modi Doubles Single-Window Clearance Limit For New Fdi Proposals

[manjunath455]

In a bid to fast-track foreign direct investment into the country, the government on Wednesday more than doubled the threshold of investment that can be cleared by the Foreign Investment Promotion Board, the agency that provides single-window clearance for such proposals.

So far, the FIPB had the power to approve FDI proposals up to Rs 1,200 crore; big-ticket proposals beyond the Rs 1,200 crore threshold landed up in a Cabinet sub-committee headed by Prime Minister Narendra Modi for clearance, increasing delays.

Now, the FIPB can clear projects worth Rs 3,000 crore, a move that could "expedite the approval process and result in increased foreign investment inflows", the government said.

PM Modi has vowed to roll out a red carpet for foreign investors in the country, vital for the success of his 'Make in India' initiative that aims to turn the country in to a global manufacturing hub.

India receives a fraction of FDI when compared to China. In 2014, FDI flows to India increased by 26 per cent to an estimated 35 billion, according to a UN report. China received FDI worth $128 billion during the same period.

India has a liberalised FDI policy, meaning foreign investors do not require government approval when they put money in a company or sector in most sectors classified under "automatic route". However, FDI into certain sectors such as mining, telecom, etc. has to be routed through the FIPB or the Cabinet Committee on Economic Affairs.

[donganaaK]

Very nice ....