Finance Minister Nirmala Sitharaman, in her 2019 Budget speech on Friday, announced that the government will allow 100% foreign direct investment (FDI) for insurance intermediaries, while also exploring the opening up of FDI in the insurance industry.
In addition, the government will also examine the opening up for FDI the sectors of aviation and media, and the animation, video, graphics, comics (AVGC) industry, said Ms. Sitharaman.
Local sourcing norms for FDI are to be eased for single-brand retail sector, she also announced.
The Finance Minister said that global FDI flows had slipped by 13% in 2018 to $1.3 trillion from $1.5 trillion, the third consecutive decline. "But India's FDI inflows in 2018-19 at $64 billion remained strong, a 6% growth over the previous year," she said.
FPI norms
The 2019 Budget also had something for Foreign Portfolio Investments (FPIs). Ms. Sitharaman proposed to rationalise and streamline the existing KYC norms for FPIs to make it more investor-friendly.
FPI investment limit has also been increased from 24% to sectoral FDI investment limits.
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