Union Cabinet gives nod to 49% FDI in insurance sector
The Union Cabinet approved the proposal of increasing the Foreign Direct Investment (FDI) limit in the insurance sector to 49% from the existing 26%. The move is in sync with the proposal made by Finance Minister Arun Jaitley in his maiden Budget speech to raise the FDI cap in insurance sector from 26% to 49%.
However, the management control of insurance firms will be with the Indian companies only. The step to enhanced FDI limit is expected to benefit private sector insurance companies, which require a huge amount of capital.