February 07, 2025 12:21 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Video emerges showing how Indians hide in Panama jungle to enter US illegally amid deportation by Trump administration | Engaging US to ensure no Indian deportee is mistreated: Jaishankar in Rajya Sabha amid 'handcuffed' extradition row | Opposition slams Modi govt after US deports illegal Indian immigrants in captive state | Union Minister Jyotiraditya Scindia inaugurates North East Investment Roadshow in Chennai | Deepika Padukone, Sadhguru, Mary Kom, other eminent personalities to feature in PM Modi's Pariksha Pe Charcha 2025 | Bangladesh protesters vandalise Sheikh Mujibur Rahman's residence in Dhaka before setting it on fire | AAP rejects Exit Polls' prediction of BJP’s return in Delhi after 27 years | Tirupati Temple board orders action against 18 employees for not practicing Hindu faith | Exit polls predict BJP’s return in Delhi after 27 years, setback for AAP | PM Modi takes holy dip at Triveni Sangam in Maha Kumbh Mela

Union Budget proposes permitting 100% FDI for insurance intermediaries

| @indiablooms | Jul 05, 2019, at 04:09 pm

New York, July 5 (IBNS): It is being contemplated to permit 100% Foreign Direct Investment (FDI) for insurance intermediaries, announced Union Minister of Finance and Corporate Affairs Nirmala Sitharaman while presenting the Union Budget 2019-20 in the Parliament on Friday.

She further proposed that Local sourcing norms will be eased for FDI in Single Brand Retail sector.

The Finance Minister also added that FDI inflows into India have remained robust despite global headwinds.  Global Foreign Direct Investment (FDI) flows slid by 13% in 2018, to US$ 1.3 trillion from US$ 1.5 trillion the previous year – the third consecutive annual decline.

The Finance Minister further stated that according to UNCTAD’s World Investment Report 2019.  India’s FDI inflows in 2018-19 remained strong at US$ 64.375 billion marking a 6% growth over the previous year.

The Finance Minister proposed to further consolidate the gains in order to make India a more attractive FDI destination:

The Government will examine suggestions of further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders.

100% Foreign Direct Investment (FDI) will be permitted for insurance intermediaries.

Local sourcing norms will be eased for FDI in Single Brand Retail sector.
FPIs will be permitted to subscribe to listed debt securities issued by ReITs and InvITs.

The Finance Minister further added that time has come that India not only gets integrated into global value chain of production of goods and services, but also become part of the global financial system to mobilise global savings, mostly institutionalized in pension, insurance and sovereign wealth funds.

Towards this end, the Government is contemplating organizing an Annual Global Investors Meet in India, using National Infrastructure Investment Fund (NIIF) as the anchor, to get all three sets of global players- top industrialists/corporate honchos, top pension/insurance/sovereign wealth funds and top digital technology/venture funds.

The Finance Minister stated that an important determinant of attracting cross-border investments is availability of investible stock to the FPIs. This issue assumes greater significance in view of the gradual shift, from stock targeted investments, towards passive investment whereby funds track global indices composition of which depends upon available floating stock.

Union Budget 2019-20 propose to increase the statutory limit for FPI investment in a company from 24% to sectoral foreign investment limit with option given to the concerned corporates to limit it to a lower threshold, the Minister added.

The Finance Minister also stated that as a key source of capital to the Indian economy, it is important to ensure a harmonized and hassle free investment experience for Foreign Portfolio Investors. Hence, it is proposed to rationalize and streamline the existing Know Your Customer (KYC) norms for FPIs to make it more investor friendly without compromising the integrity of cross-border capital flows.

The Finance Minister further proposed to merge the NRI-Portfolio Investment Scheme Route with Foreign Portfolio Investment Route with a view to provide NRIs with seamless access to Indian equities.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
PM Modi on Budget 2024 Jul 23, 2024, at 09:30 pm