Fashion
India updates rules to clear FDI proposals within 12 weeks
Up to 12 weeks’ time has been fixed for a decision on the proposals, excluding the time taken by applicants in removing deficiencies in the proposals or in supplying additional information as may be required by the competent authority, the Ministry Of Commerce & Industry said in a press release.
India has revised its FDI approval process, extending the decision timeline to 12 weeks from 10 weeks earlier under a new DPIIT framework.
Investments from neighbouring countries will require Ministry of External Affairs clearance.
The government also eased norms for firms with up to 10 per cent Chinese/Hong Kong shareholding and introduced 60-day fast-track approvals for a few sectors.
The last such SOP was issued on June 29, 2017. It had prescribed a maximum of 10 weeks for clearing such proposals.
As per the revised SOP, all applications will be forwarded to the Ministry of External Affairs for its comments and clearance on investments from countries sharing a land border with India and, in other cases, where necessary, within the stipulated time period.
Last month, the government eased FDI norms for foreign companies having a Chinese/Hong Kong shareholding of up to 10 per cent (or non-controlling stake), enabling them to invest in India under the automatic route, subject to applicable sectoral conditions and FDI caps.
Further, the government has decided to provide expedited clearance (within 60 days) for investors of these seven countries in specific sectors/activities. These sectors include polysilicon wafers and capital goods manufacturing.
In case of proposals involving total foreign equity inflow of more than ₹50 billion, the Cabinet Committee on Economic Affairs (CCEA) will take a decision.
Fibre2Fashion News Desk (DS)