Union Cabinet approves abolition of Foreign Investment Promotion Board.

TNPSC Current Affairs May 2017, 24

To Make India an attractive investment destination, Union cabinet has approved abolition of Foreign Investment Promotion Board (FIPB). This will simplify procedures for ease of doing business and allowing administrative Ministries/Departments to process applications for FDI requiring government approval.

Significance: 

• Now work relating to processing of applications for FDI and approval of the Government thereon under the extant FDI Policy and FEMA (Foreign Exchange Management Act), shall now be handled by the concerned Ministries/Departments in consultation with the Department of Industrial Policy & Promotion(DIPP), Ministry of Commerce. 
• It will also issue the Standard Operating Procedure (SOP) for processing of applications and decision of the Government under the extant FDI policy
• Also Foreign Investors will find India more attractive destination and this will result in more inflow of FDI.
• . The move will provide ease of doing business and will help in promoting the principle of Maximum Governance and Minimum Government ( as per official release)