WBCS.LIVE practice question

India, foreign Investment Promotion Board now works under

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Reserve Bank of India
  2. Ministry of External Affairs
  3. Ministry of Commerce
  4. Ministry of Finance

Correct answer and explanation

Correct answer: Ministry of Finance

Explanation: The Foreign Investment Promotion Board (FIPB) was an inter-ministerial body responsible for processing Foreign Direct Investment (FDI) proposals that required government approval. It functioned under the Department of Economic Affairs, Ministry of Finance. However, in 2017, the FIPB was abolished to simplify the FDI approval process, and most sectors were shifted to the automatic route. Currently, FDI proposals under approval route are handled directly by the concerned ministries in consultation with the Department of Economic Affairs.