India: Cabinet okays winding up of FIPB, approves strategic partnership policy for defence manufacturing – 25 May 2017

  • The union cabinet on 24 May 17 approved dismantling of the Foreign Investment Promotion Board, marking a watershed in India’s overseas investment framework, giving a major boost to ‘Make in India’ and easing the flow of foreign capital into the country. It also approved the much-awaited strategic partnership policy for defence manufacturing and a new government procurement policy that will give preference to local goods.
  • It also approved the much-awaited strategic partnership policy for defence manufacturing and a new government procurement policy that will give preference to local goods.
  • Four sub-sectors have been selected for the strategic partnership policy, which seeks to create a pool of six Indian firms that will be accorded special status.
  • Once the pool is created, the companies will be given the opportunity to bid for mega defence production orders, expected to be worth over USD20bn.
  • The cabinet abolished FIPB as pledged by Jaitley in his Feb 17 Budget, removing a layer of decision-making for foreign direct investment (FDI) approvals in 11 sectors that needed prior government approval.

External Link : http://economictimes.indiatimes.com/news/economy/policy/union-cabinet-scraps-25-years-old-foreign-investment-promotion-board/articleshow/58825768.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

25-May-2017


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