Union Budget 2021 | FDI limit in insurance hiked to 74%

Daniel Fowler
February 1, 2021

At the beginning of the joint session of Parliament on Friday, Prime Minister Narendra Modi had also said that the Finance Minister had already announced 3-4 mini Budgets and that the 2021-22 Budget would be historic. Here's a look at what will be more expensive and what's become cheaper.

Earlier this month, Sitharaman had stated that the budget for the fiscal year beginning April will be "like never before".

".We have now worked out the modalities and the NRF outlay will be Rs 50,000 crore over five years". The move will bring relief to the automotive sector.

Figures indicate that Rs 25,000 crore of FDI was received in the sector after the increase in the limit, only Rs 5,400 crore of additional capital infusion has happened in the sector.

Senior citizens who are 75 years and above, and have only pension and interest income, are now exempt from filing income tax returns.

Met Éireann has issued a weather advisory for Ireland this weekend
Monday is forecast to be a cold and mostly cloudy affair with more flurries of rain and sleet - the north will suffer snow fall. Saturday night will be cold and mainly dry with clear spells and a sharp frost, as temperatures fall to between -1° and +2°.

"A more liberal FDI policy will certainly attract higher amounts of foreign capital, which will aid in increasing insurance penetration in India".

The government on Monday proposed Rs 1,500 crore-scheme to promote digital payments in the country.

Creation of a "bad bank", or an entity to address the stressed assets of banks, which will be set up through the asset reconstruction (ARC) model.

Tax revenue - With an estimated 7.7 per cent economic contraction this fiscal, the 12 per cent growth projected in tax revenues at Rs 24.23 lakh crore for 2020-21 for current fiscal is hard to meet.

At present, FDI up to 49 per cent is permitted in insurance companies. It will also include the listing of Life Insurance Corporation of India (LIC), and proposed privatisation of major state-run companies such as Air India and Bharat Petroleum Corporation (BPCL).

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