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A Non-Resident Indian wants to get approval under Government route for

June 1, 2025 by rawan239

A Non-Resident Indian wants to get approval under Government route for FDI in ‘Single Brand’ product retailing in India. Which among the following would be the appropriate agency to approach for this application ?

Regional Office of Reserve Bank of India

Head Office of Reserve Bank of India

Department of Economic Affairs

Department of Industrial Policy and Promotion

This question was previously asked in

UPSC Combined Section Officer – 2024

Download PDF Attempt Online

The correct answer is Department of Industrial Policy and Promotion (D).

In India, the Department for Promotion of Industry and Internal Trade (DPIIT), which was formerly known as the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry, is the nodal department responsible for formulating and implementing the FDI policy. Applications for FDI under the government approval route, including for ‘Single Brand’ product retailing beyond the automatic route limits, are processed through the Foreign Investment Facilitation Portal (FIFP), which is managed by DPIIT.

While the Reserve Bank of India (RBI) is involved in the regulation of foreign exchange and monitoring of FDI inflows/outflows, the policy formulation and approval process under the government route for FDI proposals typically falls under the purview of DPIIT (formerly DIPP). The Department of Economic Affairs (DEA) in the Ministry of Finance is also involved in broader economic policies, but the specific handling of FDI applications under the government route is managed by DPIIT. The name ‘Department of Industrial Policy and Promotion’ (DIPP) was used before the renaming to DPIIT; in the context of a question likely referencing the structure before the rename, DIPP is the correct choice. Assuming the question reflects the older terminology, DIPP (Option D) is correct. If it were updated terminology, the option would likely be DPIIT. Given the option, DIPP is the intended answer.

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