Bye bye FIPB

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The dissolution of the FIPB indicates a fast-tracking of foreign investment into India.


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Bye bye FIPB


Since more than 90% of foreign direct investment comes through the automatic route, hence the Foreign Investment Promotion Board (FIPB) had lost its relevance and the government has taken the right decision of scrapping it. Further, the sectoral regulation has also become adequately strong, so the need for this Board, which was set up in the early 1990s was no longer felt. Most advanced countries gladly accept all foreign investment, but there are institutional mechanisms to block such investment proposals that hurt national security and interest. It is time India also has such a mechanism in place. Since all foreign investment coming to India needs to comply with RBI’s foreign exchange reporting requirements, hence RBI would be best suited to act as a nodal agency. The government should expand the powers of the RBI beyond collection of information to also refer proposals for vetting to the concerned ministries. The process could be made transparent by placing the factors that led to the decision (of acceptance or rejection of a proposal) before a committee of the Parliament. As said, worldwide there are institutional arrangements in place backed by law that determine if investment proposals threaten national security. The Indian mechanism should have stringent timelines for an RBI review and further reporting to the Parliament.

अलविदा विदेशी निवेश संवर्धन बोर्ड


चूंकि 90 प्रतिशत से अधिक निवेश स्वचालित मार्ग से आता है अतः विदेशी निवेश संवर्धन बोर्ड (FIPB) की प्रासंगिकता समाप्त हो गई थी अतः इसे समाप्त करने का सरकार का निर्णय सही है। साथ ही चूंकि क्षेत्रवार विनियमन भी पर्याप्त रूपसे सशक्त हो गया है अतः 1990 के दशक में स्थापित इस बोर्ड की कोई आवश्यकता नहीं रह गई थी। अधिकांश उन्नत देश सभी विदेशी निवेश को खुशी से स्वीकार करते हैं परंतु उन देशों में ऐसे तंत्र गठित किये गए हैं जो ऐसे निवेश को अवरुद्ध कर देते हैं जो राष्ट्रीय हितों और सुरक्षा को चोट पहुंचाते हैं। अब समय आ गया है जब भारत को भी ऐसा तंत्र स्थापित करना चाहिए। चूंकि भारत में आने वाले प्रत्येक विदेशी निवेश को आरबीआई की विदेशी विनिमय सूचना आवश्यकताओं का अनुपालन करना होता है अतः एक केंद्रक अभिकरण के रूप में कार्य करने की दृष्टि से भारतीय रिजर्व बैंक एक श्रेष्ठ संस्था होगी। सरकार को आरबीआई के केवल सूचना संग्रहित करने के अधिकार में विस्तार करके उसे संबंधित मंत्रालयों को पुनरीक्षण के लिए प्रेषित करने का अधिकार भी प्रदान करना चाहिए। इस प्रक्रिया को अधिक पारदर्शी बनाने के लिए किसी प्रस्ताव को स्वीकृत या अस्वीकृत करने का निर्णय किन कारकों के आधार पर लिया गया उन्हें संसद की एक समिति के समक्ष प्रस्तुत किया जा सकता है। जैसा कि कहा गया, विश्व भर में ऐसी संस्थाएं मौजूद हैं जो कानून से बाध्य हैं और जो निर्धारित करती हैं कि कोई विदेशी निवेश प्रस्ताव राष्ट्रीय सुरक्षा के लिए खतरा पैदा करता है या नहीं। भारत के तंत्र में आरबीआई समीक्षा और साथ ही संसद को सूचना की कठोर समय-सीमा तय होनी चाहिए।

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Bodhi Saar: Bye bye FIPB
Bye bye FIPB
The dissolution of the FIPB indicates a fast-tracking of foreign investment into India.
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