New Delhi [India], February 1 (ANI): Union Finance Minister Nirmala Sitharaman has said that the Union Budget’s proposal to increase the FDI limit in the insurance sector from 74 to 100 per cent will attract more funds and safeguards will ensure all premiums collected in India are reinvested locally.
In an interview with DD News, the Finance Minister explained the rationale behind tax relief in the Union Budget, noting that the priority is returning money to the taxpayers who are the backbone of the economy.
The Minister said that with the guidance of Prime Minister Narendra Modi, the goal is to give relief to those who contribute to the country’s growth, including MSMEs, to further empower them.
She said while the exemption applies up to Rs 12 lakh, the rates across income bands have been reduced, ensuring lower taxes for all.
The aim is to benefit the middle class without letting higher incomes escape taxation. The new system simplifies and reduces tax incidence for all,” she said.
In her budget speech, Sitharaman said 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,” she said.
She also said that a forum for regulatory coordination and development of pension products will be set up.
“To implement the earlier announcement on simplifying the KYC process, the revamped Central KYC Registry will be rolled out in 2025. A streamlined system for periodic updating will also be implemented.”
In her speech, the Finance Minister also said that requirements and procedures for speedy approval of company mergers will be rationalized. 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 Bilateral Investment Treaties will be revamped and made more investor-friendly, she noted.
In the interview to DD News, Sitharaman spoke about the budget announcement concerning the second Asset Monetisation Plan.
The minister said the government has consulted extensively with states; many identified central public sector undertakings for improved state use. The 2020 asset monetization phase gained momentum, and now returns are reinvested to build new assets, she said.
The Minister said SIDBI will open branches in every industrial MSME cluster to offer direct, affordable working capital & term loans, meeting MSMEs’ finance needs.
The Budget announced ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states covering 100 districts to increase productivity, adopt crop diversification, augment post-harvest storage, improve irrigation facilities, and facilitate availability of long-term and short-term credit.
Sitharaman said a comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership with states to address underemployment in agriculture through skilling, investment, technology, and invigorating the rural economy. The goal is to generate ample opportunities in rural areas, with focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families. (ANI)
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