FDI Policy Easing and Streamlining
Key Questions
What is the new SOP for FDI approvals in India?
The Centre has issued a Standard Operating Procedure (SOP) for paperless FDI applications through DPIIT, featuring time-bound approvals to streamline the process. This aims to boost inflows amid global caution.
What changes apply to FDI from China and Hong Kong?
Norms have been eased for stakes less than 10% from China or Hong Kong, effective May 1. This facilitates smaller investments while maintaining oversight on larger ones.
What are the FDI norms for the insurance sector?
100% FDI is permitted in insurance, but with a 20% cap specifically for LIC. FEMA tweaks are key for enabling such deals.
Centre issues SOP for paperless FDI via DPIIT with time-bound nods; eased norms for <10% China/HK stakes (May 1); 100% FDI in insurance (LIC 20% cap). Boosts inflows amid global caution, FEMA tweaks key for deals.
Sources (1)
Updated May 6, 2026