Now Reading: Government may raise FDI approval threshold to Rs 15,000 crore
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Government may raise FDI approval threshold to Rs 15,000 crore
The government is considering a proposal to raise the threshold for foreign direct investment proposals requiring Cabinet Committee on Economic Affairs (CCEA) approval from Rs 5,000 crore to Rs 15,000 crore, sources…
The Story in Brief
The government is considering a proposal to raise the threshold for foreign direct investment proposals requiring Cabinet Committee on Economic Affairs (CCEA) approval from Rs 5,000 crore to Rs 15,000 crore, sources said. The limit has not changed since November 2015. The move aims to improve the investment climate and ease of doing business, given inflation and the growing scale of investments. A committee of secretaries had also suggested the revision. The proposal is at a discussion stage. Additionally, the government may ease FDI norms for downstream investments to boost inflows.
The Indian Opinion
The proposal to raise the CCEA threshold is a welcome step, but it is often exaggerated as a game-changer. FDI inflows have already crossed USD 1.16 trillion since 2000, and the top investors are stable. The real test will be whether the downstream investment exemption actually simplifies compliance for foreign firms without creating loopholes. Will the government also speed up approvals in line ministries below the threshold?
Sources (2): livemint.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
