STUDY OF FIPB IN INDIA

PRESENTED BY : SUDHAKAR KHAIRNAR ± 82 AVINA VIEGAS ± 110 POOJA PARALIKAR ± 87 MANISH JOSHI ± 118 AVINASH SHETTY - 102 SARIKA JHADHAV ± 77 POONAM PAWAR - 89

THE FOREIGN INVESTMENT PROMOTION BOARD .FIPB ´ ´ ´ ´ Importance of FDI Low volume of FDI In India Expeditious disposal of proposals involving FDI in specified sectors and Clearance of the proposals within specified time frame History of FIPB Before 1996 3 tier approval Mechanism In 1996 FIPB to Department of Industrial Policy & Promotion Reconstitution of the Board In 2003 FIPB was transferred to the Department of Economic Affairs. Ministry of Finance change in approval level After 1st Oct 2010 investment proposal limit increased to 1200 cores .

To identify sectors for investment with a view of national priorities and specific regions of the world from which investment may be invited through special efforts. to interact with the Foreign Investment Promotion Council (FIPC) in the Ministry of Industry to undertake activities for promoting and facilitating FDI.FIPB FUNCTIONS ´ ´ ´ ´ ´ ´ Expeditious disposal of proposals involving FDI in specified sectors and Clearance of the proposals within specified time frame Review of implementation of the proposal Review of general and sectoral policy regimes relating to FDI to undertake investment promotion activities To interact with the Industry Association/Bodies and other concerned government and non-government agencies on relevant issues in order to facilitate increased inflow of FDI. considered necessary from time to time. .

Investment by Foreign Company in India .

except for: « « « « Industries reserved for the Public Sector Industries retained under compulsory licensing Items of manufacture reserved for the Small Scale Sector If the proposal attracts locational restriction ´ Industrial Entrepreneur Memorandum .THE INDUSTRIAL POLICY ´ ´ Industrial Licensing All Industrial undertakings exempt from obtaining an industrial license to manufacture.

nitrocellulose and matches Certain hazardous chemicals . safety fuses.THE INDUSTRIAL POLICY ´ ´ Industries reserved for the Public Sector: (1) Atomic Energy and (2) Railway Transport Compulsory licensing needed in the following industries: « « « « « Distillation and brewing of alcoholic drinks Cigars and cigarettes and manufactured tobacco substitutes Electronic aerospace and defence equipment of all types Industrial explosives including detonating fuses. gun powder.

ENTRY PROCESS & ENTRY STRATEGIES .

600 Crore (approx SGD 222 million) Prior Permission By exception Approval of Foreign Investment Promotion Board needed. Decision generally within 4-6 weeks .THE ENTRY PROCESS Investing in India Automatic Route General rule ‡Inform RBI within 30 days of inflow/issue of shares ‡ Pricing: FEMA Regulations ‡Unlisted ± CCI ‡Listed ± SEBI ‡ Cap of Rs.

THE ENTRY PROCESS: AUTOMATIC ROUTE ´ All items/activities for FDI investment up to 100% fall under the Automatic Route except the following: « « « « All proposals that require an Industrial Licence. . All proposals relating to acquisition of existing shares in an existing Indian Company by a foreign investor. All proposals falling outside notified sectoral policy/ caps or under sectors in which FDI is not permitted. All proposals in which the foreign collaborator has a previous venture/ tie up in India.

Earlier Case by Case Approach Downstream Investment .THE ENTRY PROCESS: GOVERNMENT APPROVAL ´ ´ ´ ´ ´ FIPB Approval For all activities. which are not covered under the Automatic Route Composite approvals involving foreign investment/ foreign technical collaboration Published Transparent Guidelines vs.

FDI PROPOSALS APPROVED BY FIPB .

PRESENT PICTURE ´ ´ ´ ´ ´ India: Fourth largest economy in terms of Purchasing Power Parity Tenth most industrialized economy GDP growth rate of 8.Second highest in the world. Considerable improvement in FDI inflows FII inflows: « For the period. ´ Still a big gap between India and China . July 2003 ± Jan 2004 FII inflow has exceeded USD 7 bn. which is more than the cumulative FII inflow in the last five years.1% .

THANK YOU .

Sign up to vote on this title
UsefulNot useful