Budget 2017: FIPB abolition welcomed in London | union-budget | Hindustan Times
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Budget 2017: FIPB abolition welcomed in London

The abolition of the Foreign Investment Promotion Board (FIPB) announced by Finance Minister Arun Jaitley on Wednesday was widely welcomed in London, a major source of foreign investment as well as a destination for Indian companies seeking to raise funds.

union budget Updated: Feb 01, 2017 20:45 IST
Prasun Sonwalkar
People watch the Union Budget being presented by finance minister Arun Jaitley at an electronics showroom in Jaipur, Rajasthan on Wednesday.
People watch the Union Budget being presented by finance minister Arun Jaitley at an electronics showroom in Jaipur, Rajasthan on Wednesday.(HT Photo)

The abolition of the Foreign Investment Promotion Board (FIPB) announced by Finance Minister Arun Jaitley on Wednesday was widely welcomed in London, a major source of foreign investment as well as a destination for Indian companies seeking to raise funds.

Industrialist Swraj Paul and financial experts told Hindustan Times that doing away with FIPB would help generate more confidence among foreign investors in the Indian market. Measures to stop corruption would also generate investor confidence, they added.

“The government is now getting a grip on the demonetisation process. Lowering taxes for the low income group and for the elderly is the right thing to do. Abolishing FIPB is one of the measures that will bring more confidence in India”, Paul said.

Anuj Chande, head of the South Asia group at consultants Grant Thornton, said: “From the UK perspective, the abolition of FIPB is a very welcome step and is in the right direction of cutting bureaucracy and unnecessary hurdles which have always been a concern for UK investors”.

“Similarly, the continued steps to cut corruption through restrictions on cash funding for political parties helps give investors confidence that India is  changing and is becoming a more level playing field,” he added.

The budget, which was keenly monitored in London, will give further evidence to London-based investors that India continues to change in the right direction and allow for investor confidence in the broader business environment, Chande said.

An interactive session on post-budget analysis has been organised at the Indian high commission here on February 6, to be attended by representatives of FICCI, companies and London-based consultants.