Why has the 25-yr-old foreign investment body been scrapped?
The Centre has abolished the 25-year-old Foreign Investment Promotion Board to promote ease of doing business. This will eliminate the need for prior clearance for Foreign Direct Investment in most cases as only 11 sectors would require prior approval for FDI. Moreover, after FDI rules' liberalisation, 91%-95% of FDI was already coming in through "automatic" route, without needing FIPB clearance.