Question
Download Solution PDFWhich of the following portals approves the Foreign Direct Investment in India?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Foreign Investment Facilitation Portal.
Key Points
- The Foreign Investment Facilitation Portal (FIFP) was established by the Government of India to process foreign direct investment (FDI) applications that require government approval.
- This portal is managed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
- FIFP replaced the earlier Foreign Investment Promotion Board (FIPB) in May 2017, simplifying the FDI approval process.
- FDI proposals submitted through this portal are routed to the concerned ministries or departments for approval based on the sector involved.
- The portal plays a pivotal role in creating a transparent, efficient, and investor-friendly mechanism for FDI approvals in India.
Additional Information
- Foreign Direct Investment (FDI):
- FDI refers to an investment made by a foreign entity in the business interests of another country.
- It typically involves ownership or control over a business or assets, such as setting up subsidiaries or acquiring stakes in existing companies.
- FDI plays a key role in economic growth by bringing in capital, technology, and expertise.
- FDI Policy in India:
- India allows FDI in most sectors under the automatic route, where no government approval is needed.
- However, certain sectors like defense, telecom, and media require prior government approval via FIFP.
- The FDI policy is governed by the Consolidated FDI Policy Circular issued by DPIIT annually.
- FDI Trends in India:
- India has emerged as a top destination for FDI, attracting investments in sectors like IT, pharmaceuticals, and infrastructure.
- FDI inflows promote job creation, technology transfer, and industrial development.
- Recent government reforms have aimed to improve ease of doing business and enhance FDI inflows.
- Role of DPIIT:
- The Department for Promotion of Industry and Internal Trade (DPIIT) is responsible for formulating and implementing FDI policies.
- DPIIT also monitors the functioning of FIFP and ensures timely processing of FDI applications.
- The department plays a crucial role in promoting India as a global investment destination.
Last updated on Jul 4, 2025
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