Government Mulling 49% FDI In Insurance Sector Via Automatic Route
Government is considering a proposal to permit 49 per cent FDI through automatic approval route in the insurance sector with a view to attracting more overseas inflows. Currently, FDI up to 26 per cent is permitted through automatic approval route. For FDI up to 49 per cent, the approval of Foreign Investment Promotion Board is required. According to sources, the government could announce this decision in the forthcoming Budget as the move would help in improving ease of doing business also. “If IRDAI is looking at the proposal, RBI too is looking at and the management is in the hands of Indian then the government may do away with the FIPB approval route,” they said. India receives maximum FDI from Singapore, Mauritius, the Netherlands and Japan. In 2014-15, foreign fund inflows grew 27 per cent to $30.93 billion as against $24.29 billion in 2013-14.