NEW DELHI: Finance Minister Nirmala Sitharaman on Sunday announced a series of reforms to modernise India’s foreign investment framework, deepen capital markets and position the services sector as a key growth driver in a technology-led economy.
Presenting the roadmap, Sitharaman said the government aims to create a contemporary, user-friendly regime for foreign investments, aligned with India’s evolving economic priorities.
To strengthen the corporate bond market, she proposed introducing a market-making framework with access to funds and derivatives on corporate bond indices. The government will also allow total return swaps on corporate bonds to improve liquidity and risk management.
To boost municipal bond issuances, Sitharaman announced a ₹100-crore incentive for any single bond issuance exceeding ₹1,000 crore by large cities. The existing AMRUT scheme, which supports issuances up to ₹200 crore, will continue for small and medium towns.
On ease of doing business, the Finance Minister said persons resident outside India (PROIs) will now be allowed to invest in equity instruments of listed Indian companies through the portfolio investment scheme. The individual investment limit will be raised from 5% to 10%, while the overall cap for all individual PROIs will increase from 10% to 24%.
Highlighting the importance of emerging technologies, Sitharaman said the 21st century is technology-driven, and initiatives such as the AI Mission, National Quantum Mission, Anusandhan National Research Fund and R&D and Innovation Fund will help farmers, women in STEM, youth and Divyangjan access new opportunities.
She said nearly 25 crore people have moved out of multidimensional poverty over the last decade, and the government will now place renewed emphasis on the services sector to fulfil the aspirations of a youthful India.
A high-powered Education-to-Employment and Enterprise Standing Committee will be set up to make India a global leader in services, targeting a 10% global share by 2047. The committee will identify growth areas, job creation potential and assess the impact of AI on employment and skills.
To create new skilled career pathways, Sitharaman announced the upgradation of Allied Health Professional (AHP) institutions and the setting up of new ones, adding one lakh AHPs over five years across 10 disciplines.
In addition, 1.5 lakh multi-skilled caregivers will be trained next year to strengthen geriatric and allied care services.
The Finance Minister also proposed steps to position India as a global hub for medical value.
