Union Budget 2019: Finance Minister Nirmala Sitharaman Proposes Opening Up FDI In Single-brand Retail, Aviation, Media And Animation; 100% FDI For Insurance Intermediaries

Union Budget 2019

Finance Minister Nirmala Sitharaman while presenting the Union Budget 2019 in the Parliament has proposed a plan to make the country a more 'attractive destination' for foreign direct investments (FDI)

Written By Aishwaria Sonavane | Mumbai | Updated On:

Finance Minister Nirmala Sitharaman while presenting the Union Budget 2019 in the Parliament has proposed a plan to make the country a more 'attractive destination' for foreign direct investments (FDI)

Sitharaman increased the FDI limit from 49% to 100% and opened the scope of FDI's in various sectors like aviation, media, and animation. 

She said, "I propose to further consolidate the gains in order to make India a more attractive foreign direct investment (FDI) destination."

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Here is the proposal:  

1. The government will examine suggestions for further opening up of FDI's in aviation, media, animation AVGC and insurance sectors in consultation with all stakeholders. 

2. 100% foreign direct investment will be permitted for insurance intermediaries.

3. Local sourcing norms will be eased for the FDI in the single brand retail sector.  

She added that India should become a part of the 'global financial system'

She said, "Its high-time, India not only gets integrated into the global value chain of production of good and services but also become part of the global financial system to mobilise global savings mostly institutionalised in pensions, insurance, sovereign wealth funds and so on."

The Finance Minister announced that the PM Modi-led NDA government is examining to organise an annual 'global investors meet' in the country.  

She said, "The government is contemplating organising annual global investors meet in India using national infrastructure, investment fund as an anchor to get all three sets of global players top industrialists, corporate leaders, top pension insurance soverign wealth funds and top digital and venture funds also." 

"I propose to increase the statutary limit for FDI investment in a company from 24% to sectoral foreign investement limits with the option given to the concerned corporate to limited to a lower threshhold," she added. 

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Sitharaman in her speech further proposed a merger of NRI portfolio investment scheme route with that of the foreign portfolio investment route. 

She said, "Even though India is the world's top remittance recipient, NRI investment in Indian capital market is comparitively less. With a view to provide NRI's with a seemless access to Indian expertise, I propose to merge the NRI portfolio investment scheme route with the foreign portfolio investment route." 

"New and innovative financial instruments, have been launched in the last 5 years like the infrastructure investment trust, real-estate investment trust, as well as models like the toll operate transfer (TOT) as part of the asset modernisation strategy for augmenting infrastructure investment," she added.  
 

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