Despite a parliamentary standing committeeâ€™s firm stand against hiking the 26% foreign direct investment cap in insurance, the government has decided to approach Parliament with its original proposal to hike the limit to 49%, considering the sectorâ€™s huge capital needs. Read more
The government plans to include granting permission for foreign direct investment (FDI) upto 26% in the insurance broking sector under the automatic route in the consolidated FDI policy scheduled for a review in March. Read more
After two days of animated debate, the Lok Sabha voted in favor of Foreign Direct Investment (FDI) in retail yesterday. Sensex has rallied about 5% during last week in anticipation of favorable outcome from the parliament. This coupled with other recent reform measures announced by the government probably marks the beginning of the much needed second generation economic reforms in India. Read more
New players are eyeing a pie of India’s INR2.21 trillion (US$40.2 billion) insurance industry following the Cabinet’s approval last month to raise foreign direct investment (FDI) cap in the sector from the current 26% to 49%, reported the Hindustan Times. A partner of KPMG was quoted as saying that there is room for some 15 more players in the sector, going by the current low penetration of insurance products in the country. Read more
The increase in FDI limit in the insurance sector may attract Rs 30,000 crore that Â the industry requires over the next five years, Insurance Regulatory and Â Development Authority (IRDA) has said.
A day after the Centre announced its decision to allow up to 49 per cent Foreign Â Direct Investment (FDI) in insurance, IRDA Chairman J Hari Narayan said the move Â was essential as inflows are necessary for the sector to grow at 11 to 12 per cent. Read more
Insurance players believe FDI proposal in their sector will take at least a year or two to be approved Read more