Modi Government Abolishes FIPB

New Delhi, May 25: Another major economic reform announced by Modi government yesterday. The Union government headed by Prime Minister had cleared the proposal to abolish FIPB. Foreign Investment Promotion Board was established after the first round of economic reforms were announced in the late 1990s.

Speaking at the media conference held after the Cabinet decision yesterday union finance minister Arun Jaitley said that "today we have taken a historic decision to abolish a license raj institution ".

He also added that we no longer require this board because 90 -95 % of applications have been made under automatic route and some applications requiring approval will be given by the concerned ministry. He also said that it would improve ease of doing business in the country.

Finally, experts hailed the move saying that government has put up its promise which was announced in the budget this year and this would help to increase the FDI.