Centre Mulls Raising CCEA Approval Threshold For FDI Proposals To ₹15,000 Crore
As per the proposal, the government is considering exempting indirect foreign investment in Indian companies from obtaining its fresh nod where the upstream domestic firm has already received such approval
By : DC Correspondent
Update: 2026-08-09 15:00 GMT
New Delhi: The Centre is mulling a proposal to raise the threshold for foreign direct investment (FDI) proposals requiring approval from the cabinet committee on economic affairs (CCEA) to Rs 15,000 crore from Rs 5,000 crore at present to further improve the country's overseas investment climate, according to a top source.
The CCEA is a high-level panel headed by Prime Minister Narendra Modi with its key members include Union cabinet ministers such as the home minister and finance minister. As per the existing FDI policy, in case of proposals involving total foreign equity inflow of more than Rs 5,000 crore, the competent authority places the application for consideration of the CCEA. Below this limit, respective line ministries take a decision.
The existing limit has remained unchanged since November 2015. “The prevailing economic conditions, inflation, the growing scale of investments over the years, and the objective of promoting ease of doing business necessitate a review of the existing threshold,” the source said.
Earlier, a committee of secretaries, in its meeting, also suggested upward revision of the CCEA approval limit for FDI proposals requiring the government approval route. “The proposal is at a discussion stage. Besides, the government is also considering a proposal to ease FDI norms for downstream investments to boost overseas fund inflows and create jobs,” the source added.
As per the proposal, the government is considering exempting indirect foreign investment in Indian companies from obtaining its fresh nod where the upstream domestic firm has already received such approval. At present, prior government approval is required for downstream or indirect foreign investment in two cases -- sectors under the government approval route for FDI and investments from countries sharing a land border with India.
The government has taken a series of steps to attract overseas inflows. The investments have crossed $1.16 trillion during April 2000 and March 2026. The top ten investors include Mauritius, Singapore, the US, the Netherlands, Japan, the UK and the UAE.