Procedures for faster approval of company mergers to be streamlined and simplified.
While presenting the Union Budget 2025-26 in Parliament today, the Union Finance & Corporate Affairs Minister stated that the budget aims to introduce transformative reforms across six key sectors to enhance growth potential and global competitiveness over the next five years.
One of these focus areas is the Financial Sector, which includes industries such as insurance, pensions, and bilateral investment treaties (BITs).
FDI in the Insurance Sector
Finance Minister Smt. Nirmala Sitharaman announced that the Foreign Direct Investment (FDI) limit in the insurance sector will be increased from 74% to 100%. This higher limit will apply to companies that reinvest the entire premium within India. Additionally, the current regulations and conditions associated with foreign investment will be reviewed and simplified.
Pension Sector
To promote regulatory coordination and the development of pension products, a dedicated forum will be established, the Finance Minister stated.
KYC Simplification
To advance the previously announced KYC simplification, a revamped Central KYC Registry will be introduced in 2025, announced Finance Minister Smt. Nirmala Sitharaman. Additionally, a more efficient system for periodic updates will be implemented.
Company Mergers
The Finance Minister stated that the approval process for company mergers will be streamlined, with requirements and procedures being rationalized. The scope of fast-track mergers will be expanded, and the overall process will be made more efficient.
Bilateral Investment Treaties
In alignment with the ‘First Develop India’ initiative and to promote sustained foreign investment, the existing model for Bilateral Investment Treaties (BITs) will be revised to become more investor-friendly, the Finance Minister added