The group of ministers on foreign direct investment on Wednesday decided to recommend far-reaching changes in foreign investment norms, including reducing the role of the Foreign Investment Promotion Board, procedural simplification and allowing investments in more sectors through the automatic route.
The GoM, headed by Agriculture Minister Sharad Pawar, will forward its recommendations to the Cabinet committee on economic affairs.
The GoM is expected to recommend that FDI proposals, which are eligible for an automatic approval need not go through the FIPB, though there may be exemptions in the case of some sectors.
Similarly, in the case of sectors where less than 100 per cent FDI is allowed but are covered under the automatic route, FIPB approval will not be required.
"It is all about simplification of procedures and not liberalisation. We want to make the investment climate more conducive," Commerce and Industry Minister Kamal Nath said after the meeting.
Nath also referred to the sectors where approvals of multiple government agencies were required, and said these approvals will be brought down to one.
"We want to do away with multiple doors for the investors. They should not be requiring multiple approvals for the investment. Approval should come from one agency," he said.
The government sources said the GoM had discussed the issue of moving sectors like mining for captive use and cash and carry wholesale to the automatic route.
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