India Union Budget 2025 Key Updates - Banking, Financial Services, and Insurance (BFSI)

The Union Budget 2025 has struck the right notes for India Inc., with a slew of measures aimed at boosting consumption and encouraging private sector capital expenditure. The government's continued focus on 'Make in India' is expected to increase domestic production, reduce imports, and create jobs, contributing to long-term growth. Additionally, the proposed reforms for greater ease of doing business in India will help facilitate more international and domestic investment.

The budget outlines a transformative roadmap for India’s Banking, Financial Services, and Insurance (BFSI) sector, focusing on investment, financial inclusion, and digital growth. With the FDI limit in insurance raised to 100%, the sector is set to attract greater foreign capital, driving competitiveness and innovation. The budget strengthens MSME financing by expanding credit access through increased guarantee cover and launching a dedicated Fund of Funds for startups.

Furthering financial inclusion, key initiatives like the revamped PM SVANidhi scheme, enhanced Kisan Credit Card limits, and the Grameen Credit Score framework aim to empower underserved communities. By reinforcing regulatory frameworks, digital infrastructure, and tax reforms, the budget paves the way for a stronger, more resilient BFSI ecosystem. 

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