New Delhi : The union Finance Minister Nirmala Sitharaman on Friday announced in her maiden budget speech that the government is contemplating to permit 100% Foreign Direct Investment (FDI) for insurance intermediaries. 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.