The Cabinet Committee on Economic Affairs has approved raising the threshold limit for foreign investment proposals that need mandatory clearance of the Cabinet to ₹3,000 crore from ₹1,200 crore.
The proposal, put forward before the CCEA by the Department of Industrial Policy and Promotion (DIPP), seeks to make it easier and less bureaucratic for foreign investments to flow into the country.
Once the transaction of business rules are amended based on the CCEA decision, foreign direct investment proposals that are lower than ₹3,000 crore will only need approval from the Foreign Investment Promotion Board and the Finance Ministry.
FDI proposals that are over ₹3,000 crore will have to be referred to the CCEA for its nod.