Foreign Investment Promotion Board

The Foreign Investment Promotion Board (FIPB) in the Ministry of Finance is a high-level central agency that deals and clears proposals for investment in India. The chairman of the Board is the Secretary of the Department of Economic Affairs. Other Board members consist of the Secretaries in the Ministries of Commerce & Industries, and the Economic Relations Secretary in the Ministry of External Affairs. Other members can be co-opted from senior government officials, and professional experts from industry, commerce and banks, as and when required.

Applications are received by the FIPB through the Secretaries for Industrial Assistance (SIA). The SIA was established within the Department of Industrial Policy & Promotion in the Ministry of Industry. It provides a single window for entrepreneurial assistance, investor facilitation, processing of all applications that require Government approval, assisting entrepreneurs and investors in setting up projects (including liaison with other organizations and State Governments) and monitoring the implementation of projects. Applications can also be made with Indian missions abroad. Applications received by SIA are placed before the FIPB within 15 days of receipt. The Board has the flexibility to negotiate with investors. The FIPB's decisions are communicated by SIA, normally within 6 weeks of receipt of the application.

The World Bank...

The World Bank Group is one of the world's largest sources of development assistance. One of the world’s largest sources of development assistance, the World Bank supports the efforts of developing country governments to build schools and health centers, provide water and electricity, fight disease, and protect the environment.

The "World Bank" is the name that has come to be used for the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Together these organizations provide low-interest loans, interest-free credit, and grants to developing countries.

Higher-income developing countries—some of which can borrow from commercial sources, but generally only at very high interest rates—receive loans from the IBRD. Countries that borrow from the IBRD have more time to repay than if they borrowed from a commercial bank—15 to 20 years with a three-to-five-year grace period before the repayment of principal begins. Developing country governments borrow money for specific programs, including poverty reduction efforts, delivery of social services, protection of the environment, and promotion of economic growth that will improve living standards.

The IBRD raises almost all its money in the world’s financial markets. With an AAA credit rating, it issues bonds to raise money and then passes on the low interest rates to its borrowers. The World Bank, with 184 member countries is currently involved in more than 1,800 projects in virtually every sector and developing country.

India joined the World Bank in 1944 and is one of its oldest members. In accordance with the Bank’s strategy, lending to the country touched $2.9 billion in FY 05 – more than double the $1.4 billion lent a year earlier – making India the world’s largest recipient of Bank assistance.

As part of this total, India received IDA credits totaling $1.1 billion - the largest in the world - and IBRD loans totaling $1.8 billion, the fourth highest in the world. IFC financing also rose to over $400 million in this period.

At end-July 2005, the Bank group had 64 active projects with a net commitment of about $13 billion. Of this, $6 billion was from IDA, $5.7 billion from IBRD, and $0.1 billion under the GEF/Montreal Protocol.

The increase in Bank support to India reflects the rapid growth in India's economy with the bulk of the new lending going to much-needed infrastructure and human development projects.

The establishment of a World Bank Resident Mission in New Delhi in 1957 was a sign of the importance that the Bank attached to its relations with India. The New Delhi Office is today the oldest, continuously functioning local office. The Delhi-based India country director is responsible for the Bank's strategy in India and manages the annual budget for the country program. To better support the Bank's program in country, the number of professional staff in the New Delhi office has been increased. About one-third of the Bank's operations in India are now task-led by Delhi-based staff, of which more than half are managed by national staff.

The World Bank's New Delhi office has an active public information center with a large collection of World Bank and other publications on India and international development, and documents on projects financed by the Bank. In recent years, the World Bank’s IBRD has been giving support for India’s economic policy reforms and expanded social and environmental programs. Please visit http://www.worldbank.org for more information.

The U.S. Department of Commerce maintains a Commercial Liaison Office at the World Bank. The Office's mission is to help American firms access, enter and expand in markets that benefit from World Bank assistance. The office provides counseling, advocacy, project information, and conducts outreach programs in the region as well as in the U.S. to help U.S. firms take advantage of commercial opportunities in countries borrowing from the World Bank.