Foreign Direct Investment is any form of investment that earns interest in enterprises which function outside of the domestic territory of the investor.
Foreign direct investment is an investment made by a foreign individual or company in productive capacity of another country. It is the movement of capital across national frontiers in a way that grants the investor control over the acquired asset.
Wiki : The net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.
The Foreign Investment Promotion Board (FIPB), housed in the Department of Economic Affairs, Ministry of Finance, is an inter-ministerial body, responsible for processing of Foreign Direct Investment (FDI) proposals in India. The Board offers a single-window mechanism in respect of FDI proposals, which require government approval and are not permissible under the automatic route as per the extant FDI Policy, as formulated by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry.
Approvals under PMO: FIPB was initially constituted under the Prime Minister’s Office.
Transfer to DIPP in 1996: The Board was reconstituted in 1996 with the transfer of FIPB to DIPP.
Transfer to DEA in 2003: The FIPB was transferred to the Department of Economic Affairs (DEA), Ministry of Finance in terms of the Presidential Order dated 30.01.2003. Project-proposals involving a total investment of less than 600 crore were considered and approved by the Finance Minister and those with a total investment beyond 600 crore were submitted to the CCEA for decision. The threshold limit for investment in proposals that require approval of the CCEA (Cabinet Committee on Economic Affairs ) has been subsequently raised to 1200 crore.