Mumbai, May 25, 2017: All India Association of Industries welcomes Government of India’s decision to abolish 25-years old Foreign Investment Promotion Board (FIPB) to improve foreign direct investment (FDI) and feels that this will improve ‘ease of doing business’ and would stimulate growth and generate employment. This was necessary as in last 3 years, 90-95% of FDI in India came through the automatic route.
Mr. Vijay Kalantri, President, All India Association of Industries (AIAI) welcomed the Government’s decision and said, “With the changing time and global scenario, it was necessary for the government to abolish FIPB.”
Mr. Kalantri further added that with increased globalization and challenges ahead in the economy, with only 11 sectors now needing approval to clear FDI proposals will position India as an attractive investment destination. The onus to approve FDI on individual ministry and department would speed up the approval process. “However, the new approval system should be made simpler and time-bound to help speed-up processes for foreign investment,” he added.
Government’s decisions to abolish the outlived FIPB along with policy formulation to provide preference to ‘Make in India’ and indegenisation in government procurement are much needed steps to boost Indian economy and would in turn promote domestic manufacturing. At times, when employment growth is struggling with job losses reported across sectors, the above steps would help in creating employment, feels AIAI.
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