Now Reading: Govt considers raising FDI CCEA threshold to Rs 15,000 cr
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Govt considers raising FDI CCEA threshold to Rs 15,000 cr
The government is considering raising the threshold for foreign direct investment proposals that need Cabinet Committee on Economic Affairs approval from Rs 5,000 crore to Rs 15,000 crore, sources told PTI. The…
The Story in Brief
The government is considering raising the threshold for foreign direct investment proposals that need Cabinet Committee on Economic Affairs approval from Rs 5,000 crore to Rs 15,000 crore, sources told PTI. The current limit has been unchanged since November 2015. A committee of secretaries has also suggested the revision. The proposal aims to improve India's investment climate given inflation and the growing scale of investments. The government is also looking at easing downstream FDI norms, including exempting indirect foreign investment from fresh approval if the upstream domestic firm already has clearance.
The Indian Opinion
The move to raise the CCEA approval threshold is being sold mainly as an ease-of-doing-business fix. But that narrative skips a key truth: the current Rs 5,000 crore limit has not changed since 2015, while inflation and project sizes have ballooned. A routine update is not a reform. The real test is whether the government simultaneously reduces approval timelines for proposals that still need CCEA nod. If clearance speed stays the same, the threshold hike alone will not change much for investors.
Source: livemint.com
This story was synthesised by AI from the source linked above.
