FDI Limit for Insurance Sector to be raised to 100%: FM during Union Budget
The FM in her budget speech stated that the Foreign Direct Investment ( FDI ) limit for the insurance sector is to be raised to 100%
FDI Limit – Insurance Sector – raised – FM – Union Budget – taxsacn
FDI Limit – Insurance Sector – raised – FM – Union Budget – taxsacn
Finance Minister Nirmala Sitharaman presented the Union Budget of 2025 before the parliament today at 11 pm. The FM in her budget speech stated that the Foreign Direct Investment ( FDI ) limit for the insurance sector is to be raised to 100% from the previous 74%.
This is the eighth time the FM is presenting her budget, which is indeed a record for Indian FM. It is a much-highlighted fact that flexibility in policymaking is the need of the hour. Taxation has been seen as the main focus of the 2025 budget landscape.
Union Budget 2025: In-Depth Analysis for Strategic Insights, Click here
The Finance Minister, has announced an increase in the Foreign Direct Investment ( FDI ) limit for the insurance sector from 74% to 100%. This move has been introduced to attract more foreign capital and boost the growth of the insurance industry in India.
It is to be noted that the 100% FDI limit will only be available to companies that invest the entire collected premium within India. The government will also review and simplify the existing regulations and conditions associated with foreign investment in the sector.
This reform is expected to enhance competition, improve and bring in global expertise. It can concluded that the policy change seeks to strengthen the insurance sector while ensuring that foreign investments contribute to India's economic development.
Union Budget 2025: In-Depth Analysis for Strategic Insights, Click here
The FM assured that the existing restrictions and requirements pertaining to foreign investment will be examined and made simpler, which will inturn make the process simplified.
The main focus is being emphasised on taxational reforms. The major focus is on simplifying the tax structure to enhance compliance and reduce litigation. The minister also said that she will be presenting the new Income Tax Bill next week.
[BREAKING] No Income Tax up to Rs. 12 Lakh Income, proposes FM during Budget 2025
To Read the full text of the Finance Bill CLICK HERE
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