Indian Government Considers Raising FDI Approval Threshold to Rs 15,000 Crore
The Indian government is contemplating an increase in the foreign direct investment (FDI) approval threshold from Rs 5,000 crore to Rs 15,000 crore. This proposal, currently under discussion, aims to enhance India's investment climate by simplifying the approval process for larger overseas investments. The Cabinet Committee on Economic Affairs (CCEA), which currently reviews FDI proposals exceeding Rs 5,000 crore, would see its threshold raised, allowing line ministries to handle more proposals independently. This change is part of a broader review of FDI rules, reflecting the government's commitment to ease-of-doing-business initiatives. The proposal also includes potential modifications to downstream investment rules, which could streamline the approval process for indirect foreign investments in Indian companies.