The Department for Promotion of Industry and Internal Trade (DPIIT) has issued an up to date commonplace working process (SOP) for processing overseas direct funding (FDI) proposals introducing an outlined 12-week timeline and a completely paperless utility system, PTI reported.Under the revised framework, selections on FDI proposals can be taken inside 12 weeks, excluding the time taken by candidates to rectify deficiencies or present extra info sought by authorities.“This SOP aims to make the FDI application filing process completely paperless. Therefore, the applicant will not be required to file physical copies of any documents required to process FDI proposals,” DPIIT mentioned.The SOP mandates a digital, paperless system for submitting purposes by the Foreign Investment Facilitation Portal (FIF) and the National Single Window System (NSWS), masking all proposals requiring authorities approval below the FDI Policy and FEMA guidelines.DPIIT will act as the nodal physique below the new framework, routing proposals to related ministries whereas concurrently searching for inputs from the Reserve Bank of India (RBI), Ministry of Home Affairs (MHA) for safety clearance, and Ministry of External Affairs (MEA).The course of goals to remove duplication and guarantee time-bound selections, with timelines starting from preliminary scrutiny inside two weeks to remaining approvals in about 12 weeks. If feedback usually are not obtained inside the prescribed interval, they are going to be handled as “no objection”.As per the SOP, all purposes involving investments from international locations sharing a land border with India can be forwarded to the MEA for feedback or clearance inside the stipulated timeline. Other proposals may additionally be referred the place needed.The SOP additionally introduces stricter compliance oversight alongside quicker processing. Investments in delicate sectors equivalent to defence, telecom and civil aviation would require obligatory safety clearance, whereas giant proposals could also be escalated to the Cabinet Committee on Economic Affairs (CCEA).It permits closure of incomplete purposes, withdrawal by candidates, and mandates DPIIT concurrence earlier than rejecting proposals or imposing extra circumstances. Ministries can be accountable for monitoring compliance, with violations attracting penalties below FEMA.The revised norms additionally require all consulted departments–including the RBI, MHA and MEA–to reply inside mounted timelines, failing which their views can be presumed as no objections.The earlier SOP, issued on June 29, 2017, had mounted a most of 10 weeks for clearance of FDI proposals.Commenting on the modifications, Global Trade Research Initiative (GTRI) mentioned the framework would enhance effectivity however hold compliance necessities excessive.“The SOP will improve ease of doing business by making FDI approvals faster, transparent, and fully digital, with clear timelines boosting investor confidence. However, strong inter-agency scrutiny and security checks mean compliance will remain demanding,” Ajay Srivastava mentioned.He added that whereas the transfer is a optimistic step, India wants additional reforms. “While a welcome step, India must go further—simplifying regulations, cutting compliance costs, and reducing the cost of doing business—to attract high-quality, long-term investment into manufacturing and advanced sectors,” he mentioned.