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India offers easy bank branch rules, higher FDI
Business Standard
|December 24, 2025
NZ to amend GI law to cover Indian goods beyond wines
India has offered higher foreign direct investment (FDI) limits in banking and insurance and a more liberal bank branch licensing framework under the Financial Services Annex (FSA) of the India-New Zealand Free Trade Agreement (FTA).
This is a calibrated but forward-looking approach to financial sector liberalisation.
Under the agreement, foreign banks will be allowed to establish up to 15 branches over a four-year period. This is a significant rise from the 12 branches permitted under India’s commitments at the World Trade Organization's (WTO's) General Agreement on Trade in Services (GATS).
“India's sectoral offers represent a forward-looking liberalisation approach, featuring enhanced FDI limits in banking and insurance, alongside a liberalised bank branch licensing framework,” the finance ministry said.
“The expansion in branch limits reflects India’s commitment to progressive market opening in line with its broader strategic objectives,” it added.
This story is from the December 24, 2025 edition of Business Standard.
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