NEW DELHI: The government should replace the Foreign Investment Promotion Board with a simple and business friendly mechanism at the earliest, a Parliamentary panel has suggested. The Department Related Parliamentary Standing Committee on Commerce in its report said it was informed that once the Foreign Investment Promotion Board (FIPB) is dissolved then there is a possibility that concerned ministries overseeing sectors that require government approval for FDI would be authorised to approve the investment.
The committee desires that the Department of Industrial Policy and Promotion (DIPP) "should ensure a simple and business friendly mechanism at the earliest". It also asked the government to take necessary measures to ensure that FDI equity inflows are actual investments. The committee notes that low private investments have been one of the constraints flagged by various credit rating agencies in raising the business ratings of the country.