- India plans to raise FDI approval threshold from Rs 5,000 crore to Rs 15,000 crore
- The change aims to let ministries approve large investments without CCEA referral
- Proposals up to Rs 15,000 crore may see faster clearance, boosting ease of business
India is considering a major overhaul of its foreign direct investment rules, with the government looking to simplify approvals for large overseas investments and ease norms for downstream investments.
Inter-ministerial consultations on the proposed changes have concluded. The Department for Promotion of Industry and Internal Trade (DPIIT), under the Commerce Ministry, is now expected to move a proposal aimed at streamlining the FDI approval process, sources told NDTV Profit.
The key proposal is to raise the threshold for FDI proposals requiring approval from the Cabinet Committee on Economic Affairs (CCEA) to Rs 15,000 crore from the existing Rs 5,000 crore. The Rs 5,000 crore threshold has remained unchanged since November 2015, the sources added.
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If approved, foreign investment proposals of up to Rs 15,000 crore could be cleared by the concerned ministries without being referred to the CCEA. The move is expected to reduce approval timelines and improve India's ease of doing business.
The government is also considering changes to downstream investment rules. Under the proposed framework, an Indian company receiving indirect foreign investment may not need fresh government approval if the upstream domestic entity has already secured the required approval.
Currently, prior approval is required for downstream investments in sectors under the government approval route and for investments involving entities from countries sharing a land border with India.
Also Read: Centre Mulls Raising CCEA FDI Approval Threshold To Rs 15,000 Crore From Rs 5,000 Crore
The proposals are expected to be taken up for Cabinet approval soon. If cleared, the changes could give ministries greater authority over large-ticket investments while reducing regulatory duplication and making India more attractive to global investors.
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