India Unleashes Bold Financial Reforms to Attract Global Capital, Boost Growth

• India passed a bill allowing 100% foreign ownership in insurance firms, bolstering the sector and aiming to shift savings towards productive investments.
• Reforms extend to banks, pension funds (also 100% foreign ownership), and capital markets, targeting an 8% annual growth for a developed economy by 2047.
• The drive for foreign capital gained urgency after US President Donald Trump's 50% tariffs on Indian goods, with experts like Pramod Kumar expecting increased investment.
• Recent major foreign investments include Mitsubishi UFJ Financial Group Inc.'s $4.4 billion stake in Shriram Finance Ltd. and Sumitomo Mitsui Financial Group Inc.'s stake in Yes Bank Ltd.
• Despite challenges like foreign investor withdrawals and a weak rupee, experts believe the reforms, combined with market underperformance, make India an attractive long-term investment.

Why It Matters: India's sweeping financial reforms aim to draw foreign capital, fueling its 2047 developed economy goal.