The government should replace the Foreign Investment Promotion Board with a simple and business friendly mechanism at the earliest, a Parliamentary panel has suggested. The Department Related Parliamentary Standing Committee on Commerce in its report said it was informed that once the Foreign Investment Promotion Board (FIPB) is dissolved then there is a possibility that concerned ministries overseeing sectors that require government approval for FDI would be authorised to approve the investment. The committee desires that the Department of Industrial Policy and Promotion (DIPP) “should ensure a simple and business friendly mechanism at the earliest”.
It also asked the government to take necessary measures to ensure that FDI equity inflows are actual investments.
The committee notes that low private investments have been one of the constraints flagged by various credit rating agencies in raising the business ratings of the country.
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Talking about ease of doing business, the report suggested that the commerce and industry ministry should address the regulatory and technical issues impacting the operation of the e-biz project.
The e-biz portal serves as a one-stop shop for delivery of convenient and efficient services and addresses the needs of investors and businesses right from the inception through the entire life cycle of the business.
Noting that technical glitches are being faced by the project, the committee recommends the Department of Industrial Policy and Promotion (DIPP) to take concrete steps to address the “regulatory and technical reasons afflicting the operation of the e-biz project”.
It said one of the five central services that the department intends to integrate to e-biz portal in 2017-18 is a service that belongs to Foreign Investment Promotion Board (FIPB).
“The committee hopes that the likely abolition of FIPB in 2017-18 will not affect the proposed integration of other services,” the report, tabled in Parliament, said today.
Talking about intellectual property rights (IPRs), it recommended to expedite the filling up of 58 posts of examiners of Trade Marks and Geographical Indications.
“…applications for Trade Marks and Geographical Indications will increase manifold in times to come and all preparedness in terms of optimal human resource is a necessity,” it added.
On ease of doing business, it said concerted efforts are required to bring about further improvement.
“There is a need for better engagement with the states to effect the real change on ground. The national implementation average of the action plan on ease of doing business may be improved,” it added.
Further, it said that only 10 startups out of 592 recognised were found eligible for tax benefits.
“The committee strongly feels that there is a need for a robust incubation framework for startups,” it added.