FIPB To Remain Under Finance Ministry

Prime Minister Narendra Modi intervened to end the battle between the department of industrial policy and promotion (DIPP) and the Finance Ministry to exercise control over the Foreign Investment Promotion Board (FIPB).

DIPP, at present, is a part of the Ministry of Commerce and Industry. "It has been decided that FIPB will remain with the Finance Ministry," a senior government official said. The Modi government wants to ensure that the policy regime encourages foreign investors to invest in the country.

In order to ensure effective coordination between ministries, Modi had given Nirmala Sitharaman independent charge of commerce and industry and also made her the Minister of State for Finance and Corporate Affairs. DIPP had asked for moving FIPB back into its fold after the Modi government took charge.

The Department of Economic Affairs (DEA), which is a part of the Finance Ministry, had also asked for absolute control of the FIPB, including the policy on foreign direct investment.