Currently, India only allows up to 49% foreign ownership.
When presenting the budget on 5 July 2019, she said: “It is high time India gets fully integrated into the global value chain of production of goods and services, but also becomes part of the global financial system to mobilise global savings.”
The changes to foreign direct investment rules are also set to attract greater interest in companies involved in technology solutions for the insurance sector.
Insurers might follow
Similar moves are afoot for insurance companies, although no details were provided about whether full foreign ownership would be permitted.
It is unlikely, however, as the government previously said that it would favour a 74% cap.
Both changes are part of the budget’s aim to grow India’s economy to $5trn (£4trn, €4.4trn) by 2024-25, from the current $2.7trn.