Delhi: The Indian ministry of finance will soon be
approaching the union cabinet with a proposal to hike
the foreign direct investment (FDI) limit in insurance
from the current 26 per cent to 49 per cent.
will soon be approaching the cabinet for its approval
to move a bill in the parliament to amend the legal provisions
to raise the insurance FDI to 49 per cent, say officials
The cap is part of the Insurance Regulatory and Development
Authority Act, 1999.
government had agreed on raising FDI caps for several
other sectors including aviation, telecom and oil. Hiking
the FDI limit has been a long-standing demand of foreign
insurers who have partnered Indian companies in floating
joint ventures in both life and non-life sectors.
partners have been mounting incessant pressure on the
government to raise the cap to at least 49 per cent in
the first stage of relaxation. Several of them have even
expressed the hope that the limit would eventually be
hiked to 51 per cent and above giving them a clear majority
in the holding pattern.