Centre weighs 200% increase in foreign investment approval threshold
The Indian government is considering raising the threshold for foreign direct investment (FDI) proposals requiring Cabinet approval from Rs 5,000 crore to Rs 15,000 crore. This move aims to simplify the approval process and improve the ease of doing business in India.
Why it matters
Increasing the threshold reduces bureaucratic hurdles for large-scale foreign investments, potentially accelerating capital inflows into the Indian economy.
The government is considering raising the threshold for foreign direct investment (FDI) proposals requiring approval from the Cabinet Committee on Economic Affairs (CCEA) to Rs 15,000 crore from the current Rs 5,000 crore, in a move aimed at further improving India's investment climate, according to sources cited by news agency PTI.The proposal is currently at the discussion stage and is part of a broader review of FDI rules as the government seeks to attract larger overseas investments and simplify the approval process.Under the existing FDI policy, proposals involving total foreign equity inflows of more than Rs 5,000 crore are placed before the CCEA for consideration.Proposals below that threshold are decided by the respective line ministries.The Rs 5,000-crore threshold has remained unchanged since November 2015.CCEA limit under review amid larger investmentsAccording to sources, the government is considering the higher threshold in view of prevailing economic conditions, inflation and the growing scale…
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in