FM: Rise in insurance FDI to unlock sector potential

Bill for raising FDI limit to 100% not listed in the monsoon session

- FE BUREAU

THE PROPOSED INCREASE in the foreign direct investment (FDI) limit from 74% to 100% for insurance companies may unlock the full potential of the sector, which is projected to grow at 7.1% annually over the next five years, finance minister Nirmala Sitharaman told the Lok Sabha on Monday.

The growth of the insurance sector will outpace the corresponding global and emerging market economy growth rates, she said.

The insurance Bill to increase the FDI limit to 100% is not listed in the current session and may be taken up in the winter session. The proposed increase in FDI limit is an enabling provision which will help interested insurers to explore hiking the FDI percentage, she said.