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India has decided to abolish its Foreign Investment Promotion Board, a misnamed body that was often seen by foreign companies as an obstruction to their efforts to invest in India, rather than facilitate it.
Arun Jaitley, the finance minister, announced the board’s incipient demise while unveiling the country’s budget for the financial year on April 1, and said the move was expected to improve the ease of investing in India.
Until now, companies planning investments in a wide range of Indian economic sectors, or of a certain size, required FIPB approval in order to invest in India, but the process of obtaining such approval could be protracted, and infuriating.
Mr Jaitley said that the FIPB would be disbanded in the coming year, and that a detailed roadmap unveiling new procedures for FDI would be unveiled. He also said the government was considering further liberalisation of FDI rules.