The Foreign Investment Promotion Board is a special agency in India dealing with the matters relating to Foreign Direct Investment. This special board was set up with a view to raise the volume of investment to the country. The sole aim of the board is to create a base in the country by which a larger volume of investment can be drawn to the country.
On 18 February 2003, the board was transferred to the Department of Economic Affairs (DEA) Ministry of Finance.
Important functions of the Board are as follows:
- Formulating proposals for the promotion of investment.
- Steps to implement the proposals.
- Setting friendly guidelines for facilitating more investors.
- Inviting more companies to make investment.
- To recommend the Government to have necessary actions for attracting more investment.
With regards to the structure of the Foreign Investment Promotion Board, the board comprises the following group of secretaries to the Government:
- Secretary to Government Department of Economic Affairs, Ministry of Finance- Chairman.
- Secretary to Government Department of Industrial Policy and Promotion, Ministry of commerce and Industry.
- Secretary to Government, Department of Commerce, Ministry of Commerce and Industry.
- Secretary to Government, Economic Relations, Ministry of External Affairs.
- Secretary to Government, Ministry of Overseas Indian Affairs.
In the recent years, particularly after the implementation of the new economic policy, the Government has undertaken many steps to attract more investors for investing in the country. The new proposals for the foreign investment are allowed under the automatic route keeping in view the sectoral practices