Unified Single Window Clearance System for FDI's

By : Neha Dhyani

Updated : May 11, 2022, 10:14

For Foreign Direct Investment (FDI) projects, the government had devised a new, Unified Single Window Clearance System. It had executed numerous more active reform-related projects using sovereign wealth funds and tax dispute settlements to keep the reform momentum rolling.

In order to improve the system's functionality, it also wanted feedback from international investors.

The Government of India had developed the Unified Single Window Clearance System, which launched on March 31 in 2021. All permissions and approvals in the country were subjected to this clearance system.

What is the Unified Single Window Clearance System?

  • Despite the availability of many IT platforms when it comes to investments, like the Foreign Investment Facilitation Portal (FIFP), investors had to visit multiple platforms to get information and clearances from various stakeholders
  • FIFP is the government of India's online single point of contact with stakeholders to facilitate FDI
  • The Unified Single Window Clearance System was rolled out in stages from August 27, 2020, with the merger of six states: Haryana, Uttar Pradesh, Telangana, Gujarat, Odisha, and Goa
  • It is managed by the Ministry of Commerce and Industry's Department for Promotion of Industry and Internal Trade (DPIIT). The DPIIT advocated the development of a centralised Investment Clearance Cell to address this
  • The cell is another national digital portal with a single, consistent application form that combines the current clearance systems of several government ministries or departments
  • It provides end-to-end facilitation services, including pre-investment advice, land bank information, and clearing approvals at the federal and state levels

Unified Single Window Clearance System Objectives

The Unified Single Window Clearance System contained the following:

  1. Under the Industrial Information System (IIS), a GIS-enabled land bank was established.
  2. It was rolled out in stages beginning on August 27, 2020, with the merger of six states: Haryana, Uttar Pradesh, Telangana, Gujarat, Odisha, and Goa.
  3. All other states and relevant government departments and ministries have agreed to participate in the single window system.
  4. The Ministry of Commerce and Industry is in charge of the entire project.
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Unified Single Window Clearance System Benefits

The Unified Single Window Clearance System gave regulators, policymakers, and facilitators digital access from a single place irrespective of their geographical location, time-bound approvals, and real-time status updates to investors.

It allows a potential investor to communicate with all of the federal and state government ministries that require authorisation.

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By March 31, 2021, a new, Unified Single Window Clearance System for proposals for foreign direct investment (FDI) took place. The single-window clearance system designed was "very effective," allowing potential investors to engage with all ministries in the federal and state governments that require permission.

This window greatly assisted investors in not only obtaining information on the status of approvals but also in obtaining faster approvals.

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FAQs on Unified Single Window Clearance System

Q.1. When did the Unified Single Window Clearance System go into effect?

The Unified Single Window Clearance System was launched on March 31, 2021.

Q.2. What is the objective of the Unified Single Window Clearance System?

The government established a Unified Single Window Clearance System for bids for foreign direct investment (FDI).

Q.3. What does it mean to have a Unified Single Window Clearance System?

The Indian government opted to implement a Unified Single Window Clearance System to streamline the clearance process.

Q.4. How many states have the Unified Single Window Clearance System merged?

The Unified Single Window Clearance System was rolled out in stages from August 27, 2020, with the merger of six states: Uttar Pradesh, Odisha, Haryana, Gujarat, Telangana, and Goa.

Q.5. Which ministry is in charge of the Unified Single Window Clearance System?

The Ministry of Commerce and Industry is in charge of the entire Unified Single Window Clearance System project.