India offers higher FDI, easier bank branch norms under New Zealand FTA

Under the India-New Zealand FTA's Financial Services Annex, India has offered higher FDI limits in banking and insurance and a simpler licensing regime for foreign bank branches

India has offered higher foreign direct investment (FDI) limits in banking and insurance and a more liberal bank branch licensing framework under the Financial Services Annex (FSA) of the India-New Zealand Free Trade Agreement (FTA). This is a calibrated but forward-looking approach to financial sector liberalisation. 

Under the agreement, foreign banks will be allowed to establish up to 15 branches over a four-year period. This is a significant rise from the 12 branches permitted under India’s commitments at the World Trade Organization’s (WTO’s) General Agreement on Trade in Services (GATS). 

“India’s sectoral offers represent a forward-looking liberalisation approach, featuring enhanced