UPSC Prelims Practice Questions — Govt. sets 12-week limit to process FDI applications

Q1. With reference to the Standard Operating Procedure (SOP) for processing Foreign Direct Investment (FDI) proposals issued by DPIIT in May 2026, vis-a-vis the earlier 2017 SOP, consider the following statements: 1. The 2026 SOP extends the maximum processing timeline for government-route FDI proposals from 10 weeks under the 2017 SOP to 12 weeks. 2. The 2026 SOP, unlike the 2017 SOP, mandates that FDI applications be filed only through the Foreign Investment Facilitation (FIF) Portal or the National Single Window System (NSWS) in a fully paperless manner. 3. The 2026 SOP, for the first time, replaces the Foreign Investment Promotion Board (FIPB) with DPIIT as the nodal authority for government-route FDI approvals. Which of the statements given above is/are correct?

  1. The 2026 SOP extends the maximum processing timeline for government-route FDI proposals from 10 weeks under the 2017 SOP to 12 weeks.
  2. The 2026 SOP, unlike the 2017 SOP, mandates that FDI applications be filed only through the Foreign Investment Facilitation (FIF) Portal or the National Single Window System (NSWS) in a fully paperless manner.
  3. The 2026 SOP, for the first time, replaces the Foreign Investment Promotion Board (FIPB) with DPIIT as the nodal authority for government-route FDI approvals.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. Under the Standard Operating Procedure (SOP) for processing Foreign Direct Investment (FDI) proposals issued in May 2026, which one of the following is the nodal department responsible for receiving applications and assigning them to the concerned administrative ministry?

  • A. Department of Economic Affairs, Ministry of Finance
  • B. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • C. Department of Commerce, Ministry of Commerce and Industry
  • D. Department of Financial Services, Ministry of Finance

Q3. Under the May 2026 DPIIT Standard Operating Procedure for FDI approvals, security clearance for proposals in sensitive sectors such as Defence, Telecommunications and Broadcasting is required to be obtained from which one of the following?

  • A. Cabinet Secretariat
  • B. National Security Council Secretariat
  • C. Ministry of Home Affairs
  • D. Ministry of External Affairs

Q4. As per the FDI policy framework reaffirmed in the May 2026 DPIIT Standard Operating Procedure, investments from entities of how many countries sharing a land border with India require mandatory prior government approval irrespective of the sector or route?

  • A. Five
  • B. Six
  • C. Seven
  • D. Eight

Q5. With reference to the May 2026 DPIIT Standard Operating Procedure for processing FDI proposals, consider the following sectors: 1. Defence 2. Civil Aviation 3. Atomic Energy 4. Broadcasting Which of the above is/are correctly identified as sectors requiring mandatory security clearance from the Ministry of Home Affairs under the SOP?

  1. Defence
  2. Civil Aviation
  3. Atomic Energy
  4. Broadcasting
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4