Streamlining FDI: New SOPs for Faster Processing Revealed

The Department for Promotion of Industry and Internal Trade (DPIIT) has introduced a new SOP for Foreign Direct Investment (FDI) processing, ensuring decisions within 12 weeks. It aims for a paperless filing process and outlines collaborative timelines with ministries, enhancing efficiency from the previous 2017 SOP.

The Department for Promotion of Industry and Internal Trade (DPIIT) has revealed an updated standard operating procedure (SOP) focusing on expediting foreign direct investment (FDI) proposals. Set to ensure decisions are made within 12 weeks, the SOP excludes any additional time required by applicants to address deficiencies or provide extra information.

Aiming for a streamlined, paperless submission process, the new SOP mandates that applicants will no longer need to submit physical copies of documents. Furthermore, all applications will be sent to the Ministry of External Affairs for comments on investments from nations sharing India's land border, and, if required, in other scenarios.

The procedure calls for a coordinated effort among various ministries including the RBI, the Home Ministry, and the External Affairs Ministry to submit their comments within the set timelines. If comments are not provided within this period, it will be assumed there are none. The previous SOP, requiring a maximum clearance time of 10 weeks, was issued in 2017.