12 June 2017
INDIA: 60-day Limit for the Processing of FDI Proposals Announced
FDI proposals requiring prior government approval will now be processed within 60 days, with ministries having to approve/reject all such applications within that agreed timeframe. This applies to all of the 12 sectors where overseas investment still requires authorisation from a relevant ministry – retailing; pharmaceuticals; banking; telecommunications; broadcast media; print media; civil aviation; mining; defence; small arms; satellites; and certain financial services (including those that are unregulated or where there is more than one regulator).
In an additional move, the Department of Industrial Policy and Promotion (DIPP) has announced plans to issue standard operating procedures for the approval of FDI proposals. While no date has been announced for the adoption of these procedures, the move comes in the wake of the scrapping the body previously responsible for the processing of FDI applications, the Foreign Investment Promotion Board (FIPB), back in May of this year.
For further details, see INDIA: Foreign Investment Promotion Board Scrapped as FDI Regime Faces Further Liberalisation.