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FDI
The government is not considering any proposal to raise the foreign direct investment (FDI) limit in public sector banks to 49 per cent, from the current 20 per cent, Minister of State for Finance Pankaj Chaudhary said on Tuesday. The FDI limit in PSBs and private sector banks is 20 per cent and 74 per cent, respectively. In case of private sector banks, up to 49 per cent of FDI is through the automatic route and beyond 49 per cent and up to 74 per cent, government route is applicable. In response to a written question in the Rajya Sabha on whether the government has proposed raising the FDI limit in PSBs to 49 per cent, Chaudhary replied in the negative. Further, as per Reserve Bank of India's (RBI) Master Directions on Acquisition and holding of shares or voting rights in Banking Companies', share acquisition of a bank resulting in any person owning or controlling 5 per cent or more of the paid-up capital of the bank, requires prior RBI approval. Replying to another question, ...
The government proposes to introduce a bill to raise foreign direct investment in the insurance sector to 100 per cent in the upcoming Winter session of Parliament. The Winter session of Parliament is slated to begin on December 1 and continue till December 19. The session will have 15 working days. According to a Lok Sabha bulletin, the Insurance Laws (Amendment) Bill 2025, which seeks to deepen penetration, accelerate growth and development of the insurance sector and enhance ease of doing business, is part of the 10 legislations listed for the upcoming session of the Parliament. Finance Minister Nirmala Sitharaman in this year's Budget speech, proposed to raise the foreign investment limit to 100 per cent from the existing 74 per cent in the insurance sector as part of new-generation financial sector reforms. So far, the insurance sector has attracted Rs 82,000 crore through foreign direct investment (FDI). The finance ministry has proposed amending various provisions of the ..
The Commerce and Industry Ministry has floated a note seeking views from various central government departments on a proposal to allow foreign direct investment (FDI) in the inventory-based model of e-commerce solely for export purposes, an official said. The proposal aims to boost India's exports without impacting the businesses of small retailers. At present, the country's FDI policy does not permit overseas investments in the inventory-based model of e-commerce. It is 100 per cent allowed through the automatic route in firms that are operating through a marketplace model only, like Amazon and Flipkart. The proposal is to permit e-commerce entities in the inventory-based model of e-commerce, exclusively for the export of goods and products manufactured or produced in India, in compliance with the existing FDI policy, the official said. According to the FDI policy, the inventory-based model of e-commerce means an e-commerce activity where the inventory of goods and services is own
The commerce and industry ministry is working on a 100-day reforms agenda which may include proposals such as further liberalising FDI regime, easing investments from neighbouring countries, and more tax benefits for startups, an official said. The proposals may also include easing certain environmental norms for the leather and footwear industry, liberalised rules to promote exports through e-commerce hubs, and integrating lab testing and certification requirements for various sectors, the official said. The government is embarking on the next 100-day agenda of transformation to take India on a fast track to developed nation. In Lokmat global economic convention, Commerce and Industry Minister Piyush Goyal said that in the next 100 days, the government will follow the clarion call given by Prime Minister Narendra Modi on August 15 to take India forward on a fast-tracked pathway. These proposals would help boost the country's exports and foreign direct investments (FDI). During ..
The proposed raising of FDI limit in Indian insurance companies to 100 per cent would bring more players into the market and generate employment opportunities, Finance Minister Nirmala Sitharaman informed Parliament on Tuesday. Further, she said, "improved technologies and automation would lead to faster underwriting, claim processing leading to improved turnaround time thereby reducing cost and enhancing overall efficiency of the sector." The increase in FDI in Indian insurance companies from 74 per cent to 100 per cent was announced in the Union Budget on February 1, 2025. The Insurance Act, 1938 governs investment by insurers with a strong emphasis on safety, liquidity, and regulatory oversight by aligning investment by insurers with policyholder interests. The Act stipulates time, manner, form, conditions and instruments allowed for investment. Insurers are mandated to invest a specified percentage of funds in government securities and other approved securities as specified by