India Grants EU Banks Opening 15-Branches in 4-Year Window, Eases Insurance, Visa Rules

India has announced that EU banks may establish 15 new branches within a 4‑year period, alongside a series of liberalisations covering insurance investment, professional visas and social security arrangements. 

Key Provisions of the EU Banking Access 

The agreement authorises EU banks to open up to 15 branches by the end of the 4‑year window. This concession is exclusive to the EU, as the United Kingdom did not receive a similar allowance under the recent free trade agreement.  

Senior management and board members of EU banks will receive treatment consistent with national treatment norms. 

Insurance Investment and Professional Mobility 

Foreign direct investment in the insurance sector is now capped at 100%, removing previous restrictions. AYUSH practitioners and doctors are granted permission to operate clinics and wellness centres, using qualifications obtained in India.  

Intra‑corporate transferees will obtain 3‑year visas, extendable by an additional 2 years, with spouses and dependents included. 

Read More: EU and India to Discuss Framework for Defence Cooperation! 

Sectoral Commitments and Service Liberalisation 

The EU has opened 144 of 155 services sub‑sectors, while India will liberalise 102 sub‑sectors. Commitments cover contractual workers in 37 sub‑sectors and independent professionals in 17 sectors.  

Social security agreements currently exist with 13 of 27 EU member states, with negotiations ongoing with 7 more. A total of 14 agreements remain pending and are expected to be finalised within the next 5 years to enable related tariff benefits. 

Implications for Indian Multinationals 

The visa and professional mobility measures are designed to aid Indian IT firms and other multinationals that operate across India and EU markets.  

Enhanced access to EU banking services may also support the establishment of global capability centres, particularly where electronic service delivery is a focus. 

Conclusion 

The new framework allows EU banks to open 15 branches in 4 years, raises the insurance FDI ceiling to 100%, and expands visa and social security provisions for professionals. These steps are part of a broader effort to deepen economic ties between India and the European Union. 

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