Government To Clear FDI Proposals Within 12 Weeks Under New SOP
The government has revised its Standard Operating Procedure (SOP) for processing foreign direct investment (FDI) proposals, setting a maximum clearance timeline of 12 weeks to speed up approvals and improve ease of doing business.
Under the updated framework, all FDI applications will be decided within 12 weeks, excluding the time taken by applicants to rectify deficiencies or submit additional information sought by authorities. The earlier 2017 SOP prescribed a 10-week timeline.
The Department for Promotion of Industry and Internal Trade (DPIIT) said the additional two weeks have been included to allow proper examination of proposals that may face rejection or require additional conditions.
The revised SOP also aims to make the entire FDI application process fully paperless, eliminating the need for physical document submission.
As part of the approval process, proposals involving investments from countries sharing a land border with India will continue to be referred to the Ministry of External Affairs for clearance. These countries include China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar and Afghanistan.
All concerned ministries and departments, including the Reserve Bank of India, Home Ministry and External Affairs Ministry, will be required to provide their comments within the stipulated timeline. If no response is received within the deadline, it will be treated as “no comments.”
The government said the streamlined system is designed to improve efficiency, reduce delays, and provide greater predictability for foreign investors considering investment in India.
