The FIPB is composed of the main group of secretaries to the Indian government. Composition of FIPB may also comprise of top officials from the banks, financial institutions, and professional experts from the field of commerce and industry.
Establishment of Foreign Investment Promotion Board (FIPB):
The Indian government has set up foreign Investment Promotion Board (FIPB). It is the only agency in the country that deals with Foreign Direct Investment and also with encouraging investments in India.
The objective of Foreign Investment Promotion Board is to encourage the flow of FDI into India by taking up activities that promote investment in the country. FIPB is to operate as an effective, investor friendly, and transparent single window board for approving proposals for investment in India.
The Foreign Direct Investment into India can come from non- resident Indians, international companies, and also other investors that are foreigners.
Composition of Foreign Investment Promotion Board:
- The chairman is the Industry Secretary of the Department of Industrial Promotion and Policy
- The member is the Finance Secretary of the Indian government
- The member is the Secretary of the Department of Economic Relations
- The member is the Commerce Secretary of the Indian government
Approval of proposals by Foreign Investment Promotion Board (FIPB):
The proposals that are submitted to Foreign Investment Promotion Board are approved quickly through meaningful discussion and negotiation with the investors. It is expected to meet once in a week in order to quickly dispose of the cases that are submitted to it. Foreign Investment Promotion Board tries to communicate the decisions of the government on the FDI proposals to the applicant within the time period of six weeks.
Indian government must boost Foreign Investment Promotion Board (FIPB):
The government of India must ensure that the Composition of FIPB comprises of the best and highly skilled people of the country for this will lead to the effective working of the FIPB. Thus if the Composition of FIPB is of good quality then it will help in bringing more and more Foreign Direct Investment into the country. This in its turn will give a major boost to the Indian economy.
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