Government Streamlines FDI Process With New SOP

The government updates its SOP for handling FDI proposals, extending the processing time to 12 weeks, with improvements aimed at creating a paperless, digital procedure to encourage investments. The changes are expected to boost investor confidence by ensuring quicker, transparent processes and stronger inter-agency coordination.

The government has revised its standard operating procedure (SOP) for processing foreign direct investment (FDI) applications, extending the timeline from 10 to 12 weeks. This modification aims to accelerate and streamline the process, creating an entirely paperless procedure for filing FDI proposals.

All relevant ministries, including External Affairs and the Reserve Bank of India, are required to provide comments promptly, ensuring efficient and transparent processing. Notably, specific guidelines are included for investments from India’s bordering countries.

The updated SOP simplifies processes for companies with Chinese or Hong Kong shareholding under 10 percent. Commenting, think tank GTRI's Ajay Srivastava emphasizes the importance of reducing compliance costs to attract high-quality investments.