Foreign Investment

Promotion Board

The Foreign Investment Promotion Board (FIPB) was a nat ional agency of Government of
India, wit h t he remit t o consider and recommend foreign direct invest ment (FDI) which does not
come under t he aut omat ic rout e. India at t ract net inward foreign direct invest ment amount ing t o
USD 30.76 billion during t he fiscal year ended March 2014, a 14.13% increase compared t o t he
previous fiscal year. act ed as a single window clearance for proposals on foreign direct
invest ment (FDI) in India. The Foreign Invest ment Promot ion Board (FIPB) was housed in t he
Depart ment of Economic Affairs, Minist ry of Finance. FIPB was abolished on 24 May 2017, as
announced by Finance Minist er Arun Jait ley during 2017-2018 budget speech in Lok Sabha.[1]

Members

Secret ary, Depart ment of Economic Affairs - Chairman

Secret ary, Depart ment of Indust rial Policy & Promot ion - Member

Secret ary, Depart ment of Commerce - Member

Secret ary, (Economic Relat ion), Minist ry of Ext ernal Affairs - Member
The Board is empowered t o co-opt Secret aries t o t he Government of India and ot her t op
officials of financial inst it ut ions, banks and professional expert s of indust ry and commerce, as
required.

Process

In a significant move aimed at expedit ing flow of foreign invest ment int o t he count ry, t he Union
Cabinet liberalised t he FDI policy furt her by allowing t he FIPB t o clear proposals from overseas
ent it ies wort h up t o ₹30 billion, against t he exist ing limit of ₹12 billion.

Recommendat ions of FIPB for proposals up t o ₹30 billion are approved by Minist er of Finance.
While recommendat ions for proposals of more t han ₹3000[2] crore need t o be approved by
Cabinet Commit t ee on Economic Affairs (CCEA).

Aircel-Maxis deal controversy

Former Minist er of Law and Just ice & 2G spect rum case pet it ioner Dr Subramanian Swamy
alleged t hat in 2006, a company cont rolled by t hen Minist er of Finance P Chidambaram's son
Kart i got five per cent st ake in Sivasankaran's Aircel t o get part of ₹40 billion t hat t he Maxis
Communicat ions paid for 74 per cent st ake in Aircel. He alleged t hat Mr Chidambaram wit hheld
t he FIPB clearance t o t he deal t ill his son got t he five per cent shares in Siva's company.[3]
Subsequent ly t he issue was raised on mult iple t imes in Parliament of India by t he opposit ion
which demanded resignat ion of Mr P Chidambaram.[4] He and t he government denied all t he
allegat ions.[5] According t o The Pioneer and India Today report s, document s show t hat approval
t o t he FDI proposal was indeed delayed about 7 mont hs by P Chidambaram.[3][6][7]

External links

Finance Minist ry of India (ht t p://finmin.nic.in/fipbweb/fipbwebreport s/webpage.asp)

See also
 Invest ment promot ion agency

References

1. "Archived copy" (https://web.archive.org/web/20110828111509/http://www.fipbindia.com/index.php) .

Archived from the original (http://www.fipbindia.com/index.php) on 28 August 2011. Retrieved
16 May 2011.

2. "Archived copy" (https://web.archive.org/web/20110719161340/http://www.fipbindia.com/) . Archived

from the original (http://www.fipbindia.com/) on 19 July 2011. Retrieved 16 May 2011.

3. "Govt's defence of Chidambaram rings hollow" (http://www.dailypioneer.com/home/online-channel/360-t

odays-newspaper/63605-govts-defence-of-chidambaram-rings-hollow.html) . The Pioneer. 8 May
2012. Retrieved 10 May 2012.

4. "Aircel-Maxis Deal: Parliament Disrupted Over PC's Role" (https://web.archive.org/web/2013111002211

2/http://news.outlookindia.com/items.aspx?artid=761922&commentid=49662#49662) . Outlook
India. 8 May 2012. Archived from the original (http://news.outlookindia.com/items.aspx?artid=761922&
commentid=49662#49662) on 10 November 2013. Retrieved 10 May 2012.

5. "Aircel-Maxis Deal: PC Dismisses Charges as Reckless" (https://web.archive.org/web/20120510162107/

http://news.outlookindia.com/items.aspx?artid=762153) . Outlook India. 10 May 2012. Archived from
the original (http://news.outlookindia.com/items.aspx?artid=762153) on 10 May 2012. Retrieved
10 May 2012.

. "Document shows Chidambaram delayed Aircel-Maxis deal by 7 months" (http://indiatoday.intoday.in/st

ory/document-shows-chidambaram-delayed-aircel-maxis-deal/1/187868.html) . India Today. 8 May
2012. Retrieved 10 May 2012.

7. "Govt trapped in own web of deceit" (http://www.dailypioneer.com/home/online-channel/360-todays-ne

wspaper/63884-govt-trapped-in-own-web-of-deceit.html) . The Pioneer. 9 May 2012. Retrieved 10 May
2012.

[1]
 1. Adda, Full Forms. "full form of fipb" (https://fullformsadda.com/full-form-of-fipb/) .
FullForms Adda. Parshant Bhardwaj. Retrieved 17 May 2020.

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