Functions of FIPB

The primary Functions of FIPB as delegated to it by the government of India are to increase the flow of Foreign Direct Investment into the country. Functions of FIPB thus show that if these are fulfilled it would help in giving a boost to the Indian economy.

Setting up of Foreign Investment Promotion Board:

The Indian government has set up the Foreign Investment Promotion Board (FIPB) in the country. FIPB is the only agency in the country that deals with Foreign Direct Investments in India. The chairman of Foreign Investment Promotion Board is the Industry Secretary of the Department of Industrial Promotion and Policy.

The main aim of Foreign Investment Promotion Board is to promote FDI into the country by taking up such activities that encourage investments into India through non- resident Indians, international companies, and various other investors.

Various functions of Foreign Investment Promotion Board:

• To review the execution of the foreign investment proposals
• To approve quickly the foreign investment proposals
• To communicate with industry bodies, non- government, and government agencies on issues that help in increasing the flow of Foreign Direct Investment into the country
• To establish transparent guidelines that help in promoting FDI into the country
• To take up activities that promote investment into the country such as establishing contact with leading international companies and to encourage them to invest in India
• To communicate with the Foreign Investment Promotion Council (FIPC)
• To identify the various sectors in the country in which FDI may be wanted
• To take up various other activities that help in encouraging foreign direct investment into the country

Proper implementation of the Functions of FIPB:

Foreign Investment Promotion Board must properly execute the Functions of FIPB, for this will help to bring in more FDI into the country. Thus if Functions of FIPB are implemented in the correct way then the economy of India will get a major boost due to the huge amounts of FDI that will come into the country.