Union Budget 2025-26: Transformative Reforms in the Financial Sector
| Summary/Static | Details |
|---|---|
| Why in the news? | FDI Limit for Insurance Raised from 74% to 100% |
| FDI in Insurance | Increased to 100% (from 74%) for companies investing all premiums in India, attracting foreign investment and boosting market penetration. |
| Pension Sector | New regulatory forum for pension product development to enhance private sector participation. |
| KYC Simplification | Revamped Central KYC Registry in 2025 for easier compliance and streamlined updates. |
| Company Mergers | Faster approval process and expanded fast-track mergers to improve business restructuring efficiency. |
| Bilateral Investment Treaties (BITs) | Revamped to be more investor-friendly, encouraging long-term foreign investment. |
| Historical Context | FDI limit in insurance increased from 26% (2000) to 74%, and now to 100%. Industry grew from 7 state-owned entities to over 60 companies. |