In a series of significant policy updates tabled in Parliament on Monday, FM Nirmala Sitharaman and other senior officials outlined the government's stance on foreign investment in insurance, taxation on digital assets, smart metering, and infrastructure development.
100% FDI in Insurance to Unlock Sector Growth
Finance Minister Nirmala Sitharaman, in a written reply to the Lok Sabha, stated that the government is committed to allowing 100% Foreign Direct Investment (FDI) in insurance companies that invest the entire premium collected within India. The move, first announced in the February Budget, seeks to eliminate the current 74% cap and attract sustained global investment.
"This will help unlock the sector's full potential, projected to grow at 7.1% annually over the next five years-faster than global and emerging markets," she said. The change will also remove the need for foreign players to find Indian partners for the remaining stake, thereby easing entry barriers and boosting insurance penetration across India.
Smart Meter Installations Progress Under RDSS
Minister of State for Power Shripad Naik informed the Rajya Sabha that over 2.44 crore smart meters have been installed under the Revamped Distribution Sector Scheme (RDSS) out of a total target of 20.33 crore. States like Maharashtra, Assam, Uttar Pradesh, Chhattisgarh, Bihar and Madhya Pradesh are leading in implementation, while Delhi, Punjab, Tamil Nadu and Kerala have not reported any progress.
No Change in 30% Crypto Tax or TDS
Addressing concerns from the crypto industry, Minister of State for Finance Pankaj Chaudhary made it clear that the government has no plans to revise the 30% tax on crypto gains or the 1% TDS on crypto transactions. He also confirmed that there is currently no proposal to launch ETFs (Exchange Traded Funds) for virtual digital assets, keeping them out of the mainstream investment ecosystem for now.
Rs 1,678 Crore Released Under Aspirational Districts Programme
The Finance Ministry revealed that Rs 1,678.04 crore has been disbursed under the Aspirational Districts Programme (ADP) till February 2025, with Jharkhand (Rs 220 crore), Bihar (Rs 202 crore), and Uttar Pradesh (Rs 176 crore) being the top beneficiaries. The program aims to boost development in underperforming districts across various sectors.
No GST Rate Cut on Flex-Fuel Vehicles
The government stated that while the GST Council had deliberated on a proposal to reduce tax on flex-fuel vehicles in its 52nd meeting, no rate cut was recommended. However, the Ministry of Road Transport and Highways has urged states and UTs to offer road tax exemptions to promote these eco-friendly alternatives.
Quarterly GST Data Better for Economic Analysis
The Finance Ministry emphasized the importance of using quarterly GST collection figures rather than monthly data to assess the economy. This approach, it argued, offers a more accurate view by smoothing out seasonal or short-term variations. June's GST collection stood at Rs 1.84 lakh crore, marking a 6.2% year-on-year increase.
Gujarat's 800 MW Thermal Project Likely by FY30
The 800 MW Ukai thermal power project in Gujarat is expected to be commissioned by FY2030, according to MoS Power Shripad Naik. He also mentioned plans to add 328 GVA of transmission capacity and build 44,000 circuit kilometers of transmission lines by FY2035 as part of India's long-term power infrastructure roadmap.
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