Foreign Investment Facilitation Portal | Foreign Investment

foreign investment facilitation portal

Foreign Investment Facilitation Portal

foreign investment facilitation portal- For the past few years, they had been a wide variety of changes and changes that deeply impacted the overall economy of the country. The foreign direct investment policy of India have undergone many changes since the early 1990s in the liberalization period.

The main purpose behind all these changes in different sectors of FDI was to abolish two and a half years old Foreign Investment Promotion Board (FIPB) which required the approval of the Government in mandatory sectors.

On exceeding (FDI) Foreign Direct Investment limit of Rs.3000 crore, Finance Minister’s approval was required according to FIPB.

These were some mandatory sectors which require government approval for foreign investments. These were processed by a board called for investment promotion board (FIPB). But in June 2017 this board came to an end. As the formal dissolution of this board happened the Standard Operating Procedure started operating as it wanted to process foreign direct investment in sectors and activities where beforehand approval of the Government is required.

Department of Industrial Policy And Promotion (DIPP) has prepared Standard Operating Procedure for executing foreign investments in a more simpler manner. Does standard operating procedure came up with the foreign investment promotion board online portal known as Foreign Investment Facilitation Portal (FIFP) where applications for foreign investments will be made in sectors where prior approval of the Government is required. Thus in order to facilitate foreign direct investment in a simple manner Foreign Investment Facilitation Portal was being brought as a new online portal. This portal separates those FCI proposals which are under the approval route. Ministry of Trade and Commerce and Industry and Department Of Industrial Policy and Promotion administers this portal.


  1. To allow transparency in the process of approval of FDI
  2. to allow speedy processing, reduction in the paperwork, improvement in communication and information to investors through email.
  3. Uploading the letter of approval on the online portal to benefit investors in the standard format.
  4. to impart the knowledge of guidelines related to the FDI policy to the investors.


In order to increase the transparency AND speed procedures in the FDI process, FIBP was replaced to FIFP. After coming of FIFP governments, individual department have been given the power to clear proposals related to FDI only in consultation with DIPP. Further, there will be limited time for approving FDI proposals by authorities. If the FDI proposals are from Pakistan and Bangladesh the ministry of home affairs can reject the proposal.


As specified by Standard Operating Procedure, the portal will process the received foreign investment proposal and identify competent authorities that deal with such proposes and accordingly transfer such proposals to that of the auditor within 2 days of the online application filing. Whenever there is any confusion regarding the which proposal love will be transferred to which authority the power would be given to DIPP to identify authorities under which applications may be processed for decision.

Even though there has been the abolishment of FIPB but before processing the FDI applications it is not possible to clear proposals of FDI without the consultation from any authority. So SOP has laid down certain measures of in order to seek consultation of authorities in a timely manner. The proposals which require approval worth rupees 5000 crore shall have to seek consultation by competent authority of Cabinet Committee On Economic Affairs (CCEA). Upon seeking consultation approval letter shall have to be issued within a week of the decision of authority.


Whenever the competent authority is examining any FDI proposals it needs to take due care and precautions while deciding such proposals on its merit. Whenever the administration is willing to reject any such proposals it must seek approval of DIPP within 8 weeks from when the proposal was received. In such cases, an extension may be given on a timeline by two weeks.

When the applications are already digitally signed submission copy need not be submitted physically according to the revised framework of FIFP portal.

Registration by user who needs to start an application to be processed by FIFP has to be done at the portal along with some details like a telephone number, email ID, name, etc. Once all the details are filled in a one-time password will be sent to the registered mobile number for further verification. After receiving the OTP users need to login put the web link sent to the mobile number. Once this is done password needs to be created to access the portal further in the future.


To sum up we can say that every eye in India still remains to be a major source of investments and will continue to provide opportunities to acquire the best technology. The question whether FDI have been effective and what were the hindrances that came into the way will always pop up even after the country continues to progress in the years to come and even if the FDI policies allow different sectors under automatic route and continue with the framing of policies for doing business easily.

However, the decision of sop to replace the old system of approving foreign investment is somehow working in India.

Click here for- foreign investment in Indian startup and its advantages

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