- The government may relax foreign-direct-investment norms for company subsidiaries at the relevant time
- The FDI approval threshold for the Cabinet Committee on Economic Affairs may rise to Rs 15,000 crore
- Proposals up to Rs 15,000 crore could be cleared by ministries without CCEA referral, speeding approvals
The government may consider requests from company subsidiaries seeking relaxation of foreign-direct-investment norms at the “relevant time”, as part of efforts to simplify approvals and facilitate greater inflows of foreign capital, sources told NDTV Profit.
The proposal is part of a broader set of changes under consideration to make India's FDI framework more investor-friendly and ease regulatory barriers for large foreign investments.
ALSO READ: Centre Mulls Raising CCEA FDI Approval Threshold To Rs 15,000 Crore From Rs 5,000 Crore
Sources said the government is considering increasing the threshold for FDI proposals requiring approval from the Cabinet Committee on Economic Affairs (CCEA) to Rs 15,000 crore from the current Rs 5,000 crore.
The move would allow proposals up to Rs 15,000 crore to be cleared by the concerned ministries without being referred to the CCEA, potentially shortening approval timelines.
The Rs 5,000-crore threshold has remained unchanged since November 2015.
Another proposal under consideration seeks to ease rules governing downstream investments.
ALSO READ : India's FDI Inflows Up 44% In 2025 To $39 Billion: UNCTAD Report
Under the proposed framework, an Indian subsidiary receiving indirect foreign investment may not require a fresh government approval if the parent or upstream entity has already secured the necessary clearance.
Sources said the government held consultations with around 70 stakeholders on Aug. 19 to seek feedback on the proposed changes.
The inputs are expected to be examined before the proposals are finalised.
The government has been reviewing FDI rules to improve ease of doing business and attract more overseas capital. More than 90% of FDI inflows are already received through the automatic route.
The proposed changes, if approved, could reduce duplication in approvals and provide greater certainty to multinational companies looking to expand their investments in India.
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