The minimum Threshold For Foreign Direct Investment (FDI) Has Reduced

The minimum Threshold For Foreign Direct Investment (FDI) Has Reduced .

The government has revised the minimum threshold for foreign direct investment (FDI) to Rs 20 million from the existing Rs 50 million.

 Delivering his budget speech for the fiscal year 2022/23, Finance Minister Janardan Sharma introduced a new threshold to attract more FDI.

In September 2012 the government has decided the minimum threshold for FDI amount of 5 million. And later In June 2019, the government raised the minimum threshold amount for FDI from Rs 5 million to Rs 50 million. The government move, however, had invited widespread criticism from the private sector on the ground that provision could lead to FDI inflow into small businesses such as restaurants and coffee shops more than large investments.

Through the budget, the government has also introduced the provisions to reduce hassles while granting approval to the foreign companies that will be investing capital of more than Rs 100 million. The government will be providing approval within seven days to the foreign firms aiming to invest FDI of more than Rs 100 million.