The government has issued updated standard operating procedures for foreign direct investment approvals, introducing a paperless system and fixed timelines to improve transparency and ease of doing business.

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• Department for Promotion of Industry and Internal Trade introduced updated procedures to streamline foreign direct investment approval through a fully digital and time-bound process.
• Under the new framework, foreign investment proposals must be circulated to concerned ministries, the Reserve Bank of India, Home Ministry, and External Affairs Ministry within two days.
• The updated procedure fixes a maximum approval timeline of 12 weeks, aiming to improve investor confidence, transparency, and efficiency in processing foreign investment applications.
• A twelve-day period has been allocated for initial scrutiny and requests for additional information, followed by separate timelines for inter-ministerial consultations and clarifications.
• Sensitive sectors such as defence, telecommunications, and civil aviation will continue to require mandatory security clearance before foreign investment approvals are granted.
• Large investment proposals exceeding prescribed limits will be referred to the Cabinet Committee on Economic Affairs for final consideration and approval.
• The updated rules also contain special provisions for investments originating from countries sharing land borders with India, including China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, and Afghanistan.
• The government stated that the reforms aim to improve ease of doing business while maintaining strict regulatory oversight and compliance under foreign exchange management laws.