General Awareness

April 04, 2017 @ 01:15 PM

Foreign Investment Promotion Board (FIPB)

We hear a lot on FDI but how it is promoted in India? MBA Aspirants are expected to know this.
Read: Foreign Investment Promotion Board (FIPB)
Two decades ago as India's minister of finance, Manmohan Singh pushed through reforms to end the "license raj", a nightmare web of central planning permits and regulation that had sealed India's economy off from global trade and investment. The reforms jump-started an Indian economic boom.
The Government was committed to promoting accelerated growth in the economy. The role of foreign direct investment (FDI) as a means to support domestic investment for achieving a high level of economic development was well recognized. Increasing the level of inflow of FDI into the country became one of the main objectives of the Government's economic development strategy. The same strategy continued even in the Vajpayee era.
In order to achieve this goal of higher foreign investment the Government constituted the Foreign Investment Promotion Board (FIPB).This specially empowered Board in the office of the Prime Minister, is the only agency dealing with matters relating to FDI as well as promoting investment into the country.
It is chaired by Secretary Industry (Department of Industrial Policy & Promotion).The Foreign Investment Promotion Board (FIPB) considers Foreign Direct Investment (FDI) proposals requiring Government approval.
The objective of the Board is to promote the inflow of foreign direct investment (FDI) into India by undertaking investment promotion activities, and through facilitating investment in the country by international companies, non-resident Indians (NRIs) and other foreign investors in projects which are considered to be of benefit to the Indian economy but do not qualify for automatic approval by the Reserve Bank of India (RBI) and/or are outside the parameters of the existing policy for clearance of investment proposals.
In short, FIPB comes into the picture when automatic route is not available for foreign investment. This happens because India is not a complete open economy. Capital mobility has not been made free, rather it is regulated. Investments in certain sectors and inflows which are above a permitted threshold are not allowed in India automatically. They have to go through FIPB for clearance.
The FIPB is expected to meet every week to ensure quick disposal of the cases pending before it. It endeavors to ensure that the Government's decisions on FDI proposals are communicated to the applicant within six weeks. Foreign Investment proposals received by the board's secretariat should be put up to the Board within 15 days of receipt and the Administrative Ministries must offer their comments either prior to and/or in the meeting of the FIPB. It would function as a transparent, effective and investor friendly single window providing clearance for investment proposals.
Any proposal generally can go through any one of the two approval routes. In the first route, the recommendations of FIPB in respect of the project-proposals each involving a total investment of Rs.1200 crores or less would be considered and approved by the Industry Minister. On the other hand, for investments exceeding 1200 crores, it has to go through the second route wherein the recommendations would be submitted to the Cabinet Committee on Economic Affairs (CCEA) for decision.
FIPB is mandated to play an important role in the administration and implementation of the
Government’s FDI policy. It has a strong record of actively encouraging the flow of FDI into the country through speedy and transparent processing of applications, and providing on-line clarification.
In case of ambiguity or a conflict of interpretation, the FIPB has always stepped in with an investor-friendly approach. The recent e-filing facility is an important initiative of the Secretariat of the FIPB to further enhance its efficiency and transparency of decision making.
Stay informed, Stay ahead and stay inspired with MBA Rendezvous

Crucial Dates, You Should not Miss

TAPMI, Manipal
Admission Application closes on January 16, 2018 for 2018-20
BIMTECH, Greater Noida
Admissions open for PGDM Programmes at BIMTECH. Apply Now !
Lal Bahadur Shastri Institute of Management
Admissions are Open at LBSIM, Delhi. Apply Now !
FORE School of Management
Apply for PGDM & PGDM-IB Programmes. Application Deadline is December 22, 2017.
Goa Institute of Management
PGDM Admissions Open at GIM. Apply Before January 5, 2018
Last Date to Apply for MBA (Full Time) Programme at NIRMA is January 09, 2018
XAT 2018
Application Last Date 30th November 2017
IMI New Delhi
Application closes 4th December 2017
XIM Bhubaneshwar
Last Date 8th December 2017
SIBM Bengaluru
Apply for SNAP 2017 to be held on Dec 17 and apply for SIBM-Bengaluru through the SNAP Form
Institute of Rural Management Anand
IRMASAT will be conducted on February 4,2018, Apply Before December 31,2017
IBSAT 2017
Last date for IBSAT registration is December 12 , 2017
Last date to register for SNAP is 24th November, 2017. Last date for SSBF is 2nd January 2018
SIBM Hyderabad
Apply for SNAP 2017 to be held on Dec 17 and apply for SIBM-Hyderabad through the SNAP Form
K J Somaiya Institute of Management Studies & Research, Mumbai
Last date for Application is 31st Jan, 2018
Application for PGDM 2018-20 at SDMIMD is open till February 28, 2018
Institute of Management Technology
Application closes on November 24, 2017
MDI Murshidabad
Application for PGPM 2018-20 at MDI Murshidabad is open till November 24, 2017

Admission Open Now

Following Colleges are accepting applications.


Admissions open for 2018-20

PGDM, PGDM (HRM), PGDM(B & FS), Executive PGDM

Apply Online