The third consolidated policy circular on the foreign direct investment (FDI) made effective today has scrapped press note 1 and introduced other directives to further streamline FDI investments in India a year after the Government first announced policy overhauls.

FDI inflows in India that dipped by nearly 25 per cent over the previous year are likely to get a boost with measures such as flexibility to raise overseas capital by Indian companies and removal of certain regulatory approvals for JV collaboration by foreign companies having been put in place now.

Legally India last year reported about the consolidation of the FDI policy and its potential benefits for increased business opportunities.

Since then the Government through ministry of commerce and industry has come out with two other consolidated circulars before this one.