by Mr. Rakesh Goyal, Director, Probus

“The decision to raise the FDI limit to 100% is a transformative step that will attract capital inflows, drive innovation, and enhance industry competitiveness. Additionally, reducing the corporate tax rate for several foreign companies from 40% to 35% is a positive move that may encourage global businesses to invest in India.

However, while increasing foreign ownership from 74% to 100% is significant, challenges in ease of doing business remain. Foreign insurers are still cautious due to a deteriorating business environment in India, which may hinder substantial investments. Large-scale economic measures for growth and development are essential, but ensuring a stable and investor-friendly ecosystem is equally critical to unlocking the sector’s full potential”.