India’s finance minister Arun Jaitley has signalled the end for the government’s Foreign Investment Promotion Board (FIPB), indicating that more reforms for defence investment in the country could be on the cards.
In Jaitley’s budget speech on 1 February he said the government’s reliance on the FIPB as a regulator of inward foreign direct investment (FDI) has dwindled as a result of reforms to improve the FDI proposal process.
In terms of defence and other sectors, these reforms have been focused on allowing FDI proposals to proceed through the “automatic route”, without the requirement for approval from the FIPB. Under the reforms, defence FDI only proceeds through the “government route” – or through the FIPB – when proposals feature investment above the stated FDI-defence limit of 49%. Read More…