Budget 2019: FDI to be hiked in aviation, insurance, media and single brand retail


PTI, Jul 5, 2019, 12:56 PM IST

The government Friday proposed relaxation in the FDI norms for sectors such as media, aviation, insurance, and single brand retail with a view to attract more overseas investment. Finance Minister Nirmala Sitharaman in her Budget speech said that India’s FDI inflows in 2018-19 grew by 6 per cent to USD 64.37 billion.

“I propose to further consolidate, the gains in order to make India more attractive FDI destination. The government will examine suggestions of further opening up of FDI in aviation, media, AVGC (Animation, Visual effects, Gaming and Comics) and insurance sector in consultation with stakeholders,” she said.

The minister said 100 per cent foreign direct investment (FDI) will be permitted for insurance intermediaries, and local sourcing norms will be eased for FDI in single brand retail sector.

Currently, as per the FDI policy, 49 per cent foreign investment is allowed in the insurance sector, which includes insurance broking, insurance companies, third party administrators, surveyors and loss assessors.

Representations have been made to the government that insurance brokers should be treated on par with other financial services intermediaries, where 100 per cent FDI is permitted.

Insurance penetration in the country was 3.4 per cent in 2015 against the world average of 6.2 per cent. In 2014, it was 3.3 per cent in India. Similarly, 26 per cent FDI is permitted with government approval in publishing of newspaper and periodicals dealing with news and current affairs; and publication of Indian editions of foreign magazines in news and current affairs.

Foreign investments are considered crucial for India, which needs around billions of dollars for overhauling its infrastructure sector such as ports, airports and highways to boost growth. FDI helps improve the country’s balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

One killed, another injured in scooter-truck collision in Arantodu

Refusing medical aid to sexual violence, acid attack survivors offence: Delhi HC

Man’s miraculous escape: Lies on track as train speeds over him in Kerala

Vajpayee@100: Poet-politician whose words had fire and magic

Mangaluru: Karavali Utsava helicopter rides venue shifted

Janhvi Kapoor, Sidharth Malhotra to star in Maddock Films’ ‘Param Sundari’

Borewell mishaps indicate gaps in implementation of 2010 SC guidelines

Related Articles More

Rewind 2024: Mutual fund industry on a high; asset surges Rs 17 lakh crore this year

Epigamia founder Rohan Mirchandani dies of cardiac arrest at age 42

Lohia Auto launches EV brand ‘Youdha’, aims to sell 3 lakh vehicles by 2027

“FM ji FM ji, itna tax main kaise bharun”, asks investor Vijay Kedia in viral post

RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm

MUST WATCH

Tulunadu Daivaradane

Feeding Birds with Creative Paddy Art!

Areca Nut

HOTEL SRI DURGA BHAVANA

Harish Poonja


Latest Additions

Kohli needs to resist flashing outside the off-stump: Hayden

KSRTC inducts 20 Ambaari Utsav sleeper buses

IRCTC has stopped paying compensation to passengers for delay in private trains: RTI

One killed, another injured in scooter-truck collision in Arantodu

Refusing medical aid to sexual violence, acid attack survivors offence: Delhi HC

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.