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Removing FDI Cap To Attract Sustained Foreign Investment In Insurance Sector: FM Sitharaman
Removing FDI Cap To Attract Sustained Foreign Investment In Insurance Sector: FM Sitharaman

India.com

time28-07-2025

  • Business
  • India.com

Removing FDI Cap To Attract Sustained Foreign Investment In Insurance Sector: FM Sitharaman

New Delhi: With the increase in foreign direct investment (FDI) limit from 74 per cent to 100 per cent for insurance companies, the government aims to unlock the full potential of the Indian insurance sector, which is projected to grow at 7.1 per cent annually over the next five years, outpacing global and emerging market growth, Finance Minister Nirmala Sitharaman said on Monday. According to the minister, this is an enabling provision which will help the interested insurers to explore hiking the FDI percentage. "Further, this will eliminate the need for foreign investors to find Indian partners for the remaining 26 per cent, easing the process of setting up their operations in India, effectively increasing the number of insurers in the country," she said in a written reply to a question in the Lok Sabha. Removing the FDI cap will attract stable and sustained foreign investment, increase competition, facilitate technology transfer, and improve insurance penetration in the country, FM Sitharaman noted. Section 2(7A) (b) of the Insurance Act, 1938, prescribes the upper limit of FDI in an insurance company. The decision to increase the FDI component in a particular insurance company is made by its promoters, depending upon various factors such as the capital requirement of the company, solvency requirement, future business plans, etc, according to the government. The equity share capital of life insurers was Rs 24,110 crore, with the FDI part at Rs 11,529 crore (as on December 12, 2024), as per the IRDAI's data. FM Sitharaman also said that India offers a compelling growth opportunity for foreign banks, and the government is actively encouraging foreign investment in the banking sector. In April, addressing the India-UK Investor Roundtable discussion in London with around 60 investors, representing various pension funds, insurance companies, banks and other financial institutions in London, the Finance Minister outlined priorities of the government for enabling sustained economic growth and investment opportunities with the policy support that is shaping New India. She said that with an expanding middle class and a strong and stable policy environment, India is set to become the sixth largest insurance market by 2032, with the expected growth at 7.1 per cent CAGR from 2024-2028 - one of the fastest growing insurance markets among G20 countries.

BRICS vital for advancing multilateralism: FM
BRICS vital for advancing multilateralism: FM

Time of India

time07-07-2025

  • Business
  • Time of India

BRICS vital for advancing multilateralism: FM

FM Sitharaman (File photo) NEW DELHI: BRICS is a vital platform for advancing inclusive multilateralism, especially when global institutions are facing a crisis of legitimacy and representation, FM Nirmala Sitharaman has said. Speaking at BRICS Finance Minister and Central Bank Governors (FMCBG) meeting in Rio de Janeiro, FM said India has demonstrated resilience through a combination of strong domestic demand, prudent macro management, and targeted fiscal measures. She emphasised that India's policy response to trade and financial restrictions has focused on diversifying markets, promoting infrastructure-led growth and implementing structural reforms aimed at boosting competitiveness and productivity, finance ministry said in a post on X. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

FM Sitharaman visits Pine Labs Noida office, lauds India's fintech sector
FM Sitharaman visits Pine Labs Noida office, lauds India's fintech sector

Business Standard

time27-05-2025

  • Business
  • Business Standard

FM Sitharaman visits Pine Labs Noida office, lauds India's fintech sector

During her visit to Pine Labs in Noida, FM Sitharaman praised India's fintech sector for delivering secure and inclusive digital financial services to MSMEs and merchants New Delhi Finance Minister Nirmala Sitharaman on Tuesday highlighted how fintech innovations are delivering seamless, secure, and inclusive financial services to merchants and medium, small and micro enterprises (MSMEs). During her visit to the Noida office of Pine Labs, a leading fintech firm, FM Sitharaman lauded India's fintech companies for their role in strengthening the country's Digital Public Infrastructure (DPI). At Pine Labs office, she witnessed demonstrations of innovative solutions being developed around prepaid instruments, the Account Aggregator (AA) framework, and digital services for the Public Distribution System (PDS) and other government schemes. The finance minister also interacted with Pine Labs employees and customers during her visit. Among them was Kuldeep Chauhan, a mobile retailer from Noida and a customer of Pine Labs. Chauhan shared with FM Sitharaman how his business has experienced significant growth thanks to the widespread adoption of digital payments. Pine Labs is a fintech company, known for its innovative solutions in the payment and merchant commerce space. The company offers a range of products, including point-of-sale (POS) terminals, prepaid instruments, and digital payment solutions. Pine Labs' customers are merchants, retailers, and consumers.

CCI playing a key role in ensuring free and fair markets: FM Sitharaman
CCI playing a key role in ensuring free and fair markets: FM Sitharaman

Hans India

time20-05-2025

  • Business
  • Hans India

CCI playing a key role in ensuring free and fair markets: FM Sitharaman

New Delhi: Ensuring free and fair markets is not merely an economic need but a democratic one and the Competition Commission of India (CCI) plays an important role against this backdrop, to keep the competition alive in the markets, Union Finance Minister Nirmala Sitharaman said on Tuesday. Addressing the 16th 'Annual Day Celebrations' of the market watchdog here, FM Sitharaman said that competition drives efficiency, nurtures innovation and benefits consumers. "For innovation, competition acts as a relentless nudge. In a monopolistic environment, there is no urgency to evolve. Whereas with competition, the fear of being outpaced forces organisations to innovate — in technology, in design, in service, in delivery," she told the gathering. According to the minister, free and fair markets ensure that no single player can corner resources, suppress choice, or distort price discovery. "This benefits our consumers," she added. The enactment of the Competition Act in 2002 was a landmark reform in India's journey from a centrally planned regime to a market-driven economy, and the Commission has emerged as a key institution in safeguarding the spirit of liberalisation while checking its excesses. "The mandate of the CCI under the Competition Act is threefold: To promote and sustain competition in markets, to protect the interests of consumers and ensure freedom of trade, and to prevent practices having an adverse effect on competition," the Finance Minister said. In today's interconnected and fast-paced global economy, delays in regulatory clearances can lead to uncertainty, disrupt commercial timelines, and potentially erode the intended value of transactions. "It is, therefore, imperative that regulatory frameworks, while maintaining rigorous oversight, also facilitate swift and seamless approvals for combinations that pose no harm to competition," FM Sitharaman emphasised. In addition to the traditional challenges, recent years have seen the emergence of new challenges. Artificial Intelligence technologies raise novel questions about market power, transparency, data access, algorithmic biases, and the scope of competitive harm. "Free and fair digital markets are challenged by the emergence of gatekeeper platforms, asymmetries in data access and cross-border implications of digital business models. The rise of cross-border digital monopolies demands global cooperation and agile regulation," according to the minister. India's ongoing structural reforms -- asset monetisation, disinvestment, and digital public infrastructure -- are all geared towards unlocking market potential and deepening competition. "In this year's Union Budget, I had mentioned the importance of a light-touch regulatory framework based on principles and trust to unleash productivity and employment. In the same vein, regulators must be guided by the principle of 'minimum necessary, maximum feasible' in order to balance regulatory vigilance with a pro-growth mindset," the Finance Minister highlighted. The government had also announced that the requirements and procedures for speedy approval of company mergers will be rationalised, and the scope for fast-track mergers will also be widened, and the process made simpler.

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