The Union Budget 2025-26 aims to initiate transformative reforms across six domains which will augment the country’s growth potential and global competitiveness during the next five years, Union Finance Minister Nirmala Sitharaman said today while presenting the Union Budget 2025-26 in Parliament.
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The Union Budget 2025-26 aims to initiate transformative reforms across six domains which will augment the country’s growth potential and global competitiveness during the next five years, Union Finance Minister Nirmala Sitharaman said today while presenting the Union Budget 2025-26 in Parliament.
One of these domains is the financial sector which encompasses sectors like Insurance, Pensions, Bilateral Investment Treaties (BIT) and so forth.
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She informed the House that the FDI limit for the insurance sector will be raised from 74 to 100 per cent.This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified.
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A forum for regulatory coordination and development of pension products will be set up, the Union Finance Minister stated.
To implement the earlier announcement on simplifying the KYC process, the revamped Central KYC Registry will be rolled out in 2025, Mrs Sitharaman said. A streamlined system for periodic updating will also be implemented.
She also said that requirements and procedures for speedy approval of company mergers will be rationalised. The scope for fast-track mergers will also be widened and the process will be made simpler.
To encourage sustained foreign investment and in the spirit of ‘first develop India’, the current model BIT will be revamped and made more investor-friendly, the minister added.
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