Parliament Passes Bill To Increase FDI Ceiling Limit In Insurance Sector To 74% From 49%
3 years, 9 months ago

Parliament Passes Bill To Increase FDI Ceiling Limit In Insurance Sector To 74% From 49%

Live Law  

The Lok Sabha on Monday passed the Insurance Bill, 2021 which seeks to increase the maximum permissible Foreign Direct Investment in the insurance sector to 74%, from the current limit of 49%. As per the Statement of Object annexed to the Bill, "In order to achieve the objective of Government's Foreign Direct Investment Policy of supplementing domestic long-term capital, technology and skills for the growth of the economy and the insurance sector, and thereby enhance insurance penetration and social protection, it has been decided to raise the limit of foreign investment in Indian insurance companies from the existing 49 per cent. Parliamentary Debate While introducing the Bill, Finance Minister Nirmala Sitharaman said that after holding extensive stakeholder consultation, it was found that the Insurance companies are facing severe liquidity stress and solvency related issues. The Bill does not contemplate a provision for preventing financially weak/ fraud foreign companies from entering the Indian insurance sector.

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History of this topic

India’s insurance reforms: A bold transformation, but not without challenges
1 month ago

India’s insurance reforms: A bold transformation, but not without challenges

Live Mint  

India’s insurance industry, long seen as an underpenetrated yet promising market, is poised for a major transformation with the government’s proposal to permit 100% foreign direct investment in insurance companies and introduce composite licences. The proposed removal of the 74% cap will not only encourage global insurers to enter the market but also provide existing foreign investors the flexibility to …

Insurance reforms 2.0: Indians not required, and other relaxations to lure foreign money
5 months ago

Insurance reforms 2.0: Indians not required, and other relaxations to lure foreign money

Live Mint  

New Delhi/Mumbai: The government is considering another phase of reforms for India’s insurance sector, including a proposal to do away with the mandatory requirement of resident Indian citizens to be on the boards and top management of entities with majority foreign investment. The deliberations aimed at further liberalising foreign investment rules for India’s insurance sector come just three years after …

100% FDI to be allowed in space sector: Centre
10 months ago

100% FDI to be allowed in space sector: Centre

The Hindu  

Prime Minister Narendra Modi-led Union Cabinet on Wednesday took a series of key decisions, which included the approval for amendments to the existing Foreign Direct Investment policy on space sector. The liberalised entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space,” said Union Minister Anurag Thakur. The amended policy extends …

Healthy economic growth of India, more FDI equity inflow in 2023, say experts
1 year, 11 months ago

Healthy economic growth of India, more FDI equity inflow in 2023, say experts

Live Mint  

Despite the Russia-Ukraine war, US monetary policy, and other global uncertainties, the Indian economy is projected to remain healthy. India may attract the eyes of overseas investors in 2023 as well on account of measures such as the rollout of the production-linked incentive schemes and the projection of healthy economic growth. As per the latest figures of the government, India …

Finance ministry mulls easing laws to increase insurance penetration
2 years, 3 months ago

Finance ministry mulls easing laws to increase insurance penetration

Deccan Chronicle  

NEW DELHI: The finance ministry is contemplating changes in insurance laws, including reduction in minimum capital requirement, with a view to increasing the insurance penetration in the country. Insurance penetration in India increased from 3.76 per cent in 2019-20 to 4.20 per cent in 2020-21, registering a growth of 11.70 per cent. Easing capital requirement would allow entry of differentiated …

India received highest ever FDI inflow of over Rs 6 crore in FY 2021-22
2 years, 4 months ago

India received highest ever FDI inflow of over Rs 6 crore in FY 2021-22

Firstpost  

The increase in FDI inflows is a result of the measures taken by the Government on FDI policy reforms, stated the official statement New Delhi: India received its highest ever Foreign Direct Investment inflow of Rs 6,31,050 crore in Financial Year 2021-22 said Som Parkash, Minister of State in the Ministry of Commerce and Industry. The FDI Equity inflow in …

Manufacturing sector gets $21bn foreign direct investment in FY22
2 years, 4 months ago

Manufacturing sector gets $21bn foreign direct investment in FY22

The Hindu  

The manufacturing sector attracted Foreign Direct Investments worth $21.34 billion in 2021-22, an increase of 76% year-over-year, the Commerce Ministry said on July 28. It said the government has implemented several reforms under the FDI policy regime across sectors such as insurance, defence, telecom, financial services, pharmaceuticals, retail trading, and e-commerce. "FDI equity inflows in the manufacturing sectors have increased …

Days ahead of LIC IPO, Modi govt approves FDI up to 20%
2 years, 9 months ago

Days ahead of LIC IPO, Modi govt approves FDI up to 20%

Hindustan Times  

Continuing with its efforts to make India an attractive investment destination, an amendment has been approved to permit foreign direct investment in the Life Insurance Corporation of India with the existing policy further simplified. The FDI policy reform will further enhance ‘ease of doing business’ in the country, leading to larger FDI inflows and, thereby, contributing to the growth of …

FDI in India: Foreign Direct Investment inflows continue to increase, says govt
2 years, 10 months ago

FDI in India: Foreign Direct Investment inflows continue to increase, says govt

Live Mint  

The Foreign Direct Investment inflows has shown a continuous increase from $45.15 billion in 2014-15 to $81.97 billion in 2020-21, Minister of State in the Ministry of Commerce and Industry, Som Parkash, said in a written reply in the Lok Sabha on Wednesday. During the last five fiscal, FDI inflows worth $339.55 billion have been reported into India. The financial …

Govt mulls allowing FDI in Life Insurance Corporation of India ahead of IPO
3 years, 3 months ago

Govt mulls allowing FDI in Life Insurance Corporation of India ahead of IPO

India TV News  

The government is considering allowing foreign direct investment in Life Insurance Corporation of India ahead of the mega initial public offering. These bankers will include Axis Capital Ltd, DAM Capital Advisors Ltd, HDFC Bank Ltd, ICICI Securities Ltd and IIFL Securities Ltd. Other bankers that made a presentation on Wednesday are JM Financial Ltd, Kotak Mahindra Capital Co Ltd, SBI …

New insurance FDI rules a mixed bag for foreign investors
3 years, 7 months ago

New insurance FDI rules a mixed bag for foreign investors

The Hindu  

NEW DELHI Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per new rules notified under the Insurance Act. “In an Indian insurance company having foreign investment exceeding 49%, not less than 50% of its directors shall be independent directors, unless the chairperson of its board …

Govt May Hike FDI Limit in Pension Sector to 74%, Bill Likely in Monsoon Session
3 years, 8 months ago

Govt May Hike FDI Limit in Pension Sector to 74%, Bill Likely in Monsoon Session

News 18  

The government may hike foreign direct investment limit in the pension sector to 74 per cent and a Bill in this regard is expected to come in the next Parliament session, according to sources. Last month, Parliament approved a Bill to increase FDI limit in the insurance sector from 49 per cent to 74 per cent. The Insurance Act, 1938 …

India's FDI equity inflow up 28% year-on-year in April-January period
3 years, 8 months ago

India's FDI equity inflow up 28% year-on-year in April-January period

Business Standard  

India's FDI equity inflow up 28% year-on-year in April-January period Singapore is the top source of FDI in India, with 30.28% share of entire FDI equity inflow. US comes next, with 24.28% and UAE at 7.31% Premium In January, Japan topped the list of investor countries to invest in India with 29.09 per cent of the total inbound equity FDI, …

Bill to Increase FDI in Insurance Sector Gets Parliament's Nod
3 years, 9 months ago

Bill to Increase FDI in Insurance Sector Gets Parliament's Nod

News 18  

A bill to increase foreign direct investment in the insurance sector from 49 per cent to 74 per cent was approved by Parliament with the Lok Sabha giving green signal to the legislation by a voice vote on Monday. Piloting the Bill, Finance Minister Nirmala Sitharaman said that hiking the FDI limit in the insurance sector will help insurers to …

Rajya Sabha Passes Bill to Raise FDI in Insurance to 74%, Sitharaman Says Resident India to Head Key Positions
3 years, 9 months ago

Rajya Sabha Passes Bill to Raise FDI in Insurance to 74%, Sitharaman Says Resident India to Head Key Positions

News 18  

New Delhi: Rajya Sabha on Thursday approved a bill to raise the foreign investment limit in the insurance sector to 74 per cent with Finance Minister Nirmala Sitharaman saying while control will go to foreign companies, the majority of directors and key management persons will be resident Indians who will be covered by law of the land. Giving out reasons …

Rajya Sabha Passes Bill To Increase Foreign Direct Investment In Indian Insurance Sector To 74%
3 years, 9 months ago

Rajya Sabha Passes Bill To Increase Foreign Direct Investment In Indian Insurance Sector To 74%

Live Law  

The Rajya Sabha on Thursday passed the Insurance Bill, 2021 which seeks to increase the maximum permissible Foreign Direct Investment in the insurance sector to 74%, from the current limit of 49%. As per the Statement of Object annexed to the Bill, "In order to achieve the objective of Government's Foreign Direct Investment Policy of supplementing domestic long-term capital, technology …

Parliament Proceedings | Rajya Sabha passes Insurance Amendment Bill to increase FDI limit to 74%
3 years, 9 months ago

Parliament Proceedings | Rajya Sabha passes Insurance Amendment Bill to increase FDI limit to 74%

The Hindu  

The Rajya Sabha on Wednesday passed the Insurance Amendment Bill 2021 that increases the maximum foreign investment allowed in an insurance company from 49% to 74%, amid criticism from the Opposition parties on the clause enabling “control and ownership” by foreign investors. Mr. Sharma said, “We are not opposed to the policy of disinvestment, but is it disinvestment or leapfrogging …

Bill to Hike FDI in Insurance Sector to 74% Passed in Rajya Sabha Amid Opposition Uproar
3 years, 9 months ago

Bill to Hike FDI in Insurance Sector to 74% Passed in Rajya Sabha Amid Opposition Uproar

News 18  

Rajya Sabha on Thursday passed a bill to hike FDI in insurance sector to 74 per cent from the current 49 per cent. The Insurance Bill 2021, moved by Finance Minister Nirmala Sitharaman in the Upper House, was passed amid uproar as the Congress and other Opposition parties raised strong objections against it. The opposition to the bill forced adjournments …

Cabinet Approves Amendments in Insurance Act to Increase FDI up to 74%: Report
3 years, 9 months ago

Cabinet Approves Amendments in Insurance Act to Increase FDI up to 74%: Report

News 18  

New Delhi: The Union Cabinet on Wednesday gave its nod for amendments in the Insurance Act, paving way for 74 per cent foreign direct investment in the sector. Currently, the permissible FDI limit in the life and general insurance stands at 49 per cent with ownership and management control with Indian. Finance Minister Nirmala Sitharaman in Budget 2021-22 said, “I …

FDI rises 40% to $51.47 billion in Apr-Dec 2020-21
3 years, 9 months ago

FDI rises 40% to $51.47 billion in Apr-Dec 2020-21

The Hindu  

Foreign direct investment in India grew 40% to $51.47 billion during April-December 2020-21, according to government data released on Thursday. India has attracted 22% higher FDI inflow of $67.54 billion during the first nine months of the current fiscal as against $55.14 billion in the same period of 2019-20. "FDI equity inflow grew by 40% in the first nine months …

Insurance Companies Won't Be Taking Money Outside India Despite Spike in FDI: Fin Min Secy
3 years, 10 months ago

Insurance Companies Won't Be Taking Money Outside India Despite Spike in FDI: Fin Min Secy

News 18  

Despite the Union Budget 2021 raising FDI limit up to 74 per cent, insurance companies with foreign ownerships won’t be allowed to take money outside India, said Tarun Bajaj, Secretary, Department of Economic Affairs. In an exclusive interview to Moneycontrol, Bajaj said as per the provision under insurance act, companies are not allowed to send money outside India. When the …

Union Budget 2021 | FDI limit in insurance hiked to 74%
3 years, 10 months ago

Union Budget 2021 | FDI limit in insurance hiked to 74%

The Hindu  

Union Finance Minister Nirmala Sitharaman on Monday announced an increase in Foreign Direct Investment limit in insurance from 49% to 74%. Tabling the Union Budget for 2020-21, she said, “We propose to amend the Insurance Act, 1938 and will launch a new investor charter for investor protection. Will launch a securities market code which will include the SEBI Act, the …

Budget 2021: Industry hails budget as game-changer, Opposition says it puts India on sale
3 years, 10 months ago

Budget 2021: Industry hails budget as game-changer, Opposition says it puts India on sale

India Today  

Swadeshi Jagran Manch, an RSS- affiliate, congratulated Finance Minister Nirmala Sitharaman for presenting the robust budget despite challenges thrown by the pandemic. "The announcement of carrying out disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, Pawan Hans, Bharat Earth Movers Limited, manufacturer of rolling stock for Metro etc. The announcement of privatisation of public sector …

16% surge in FDI inflows till August
4 years, 2 months ago

16% surge in FDI inflows till August

The Hindu  

Foreign direct investment inflows into India in the first five months of 2020-21 have hit a record high, despite a sharp 60% contraction in the first quarter, with July and August raking in over $20 billion of equity FDI. Equity FDI more than quadrupled from $6.5 billion between April and June, to $27.1 billion by August — 16% higher than …

Govt’s decision on FDI in defence to enhance self-reliance in sector: Goyal
4 years, 3 months ago

Govt’s decision on FDI in defence to enhance self-reliance in sector: Goyal

The Hindu  

The government’s decision to ease FDI norms in the defence sector will push self-reliance in production and keep national interests and security paramount, Commerce and Industry Minister Piyush Goyal said on Friday. The government has permitted 74% foreign direct investment under automatic route in the sector with certain conditions. The permit for up to 74% FDI in the defence manufacturing …

Govt Permits Up to 74 per cent FDI Under Automatic Route in Defence Sector
4 years, 3 months ago

Govt Permits Up to 74 per cent FDI Under Automatic Route in Defence Sector

News 18  

The government has permitted foreign direct investment of up to 74 per cent under automatic route in the defence sector with a view to attracting overseas investors, according to a press note issued by the DPIIT on Thursday. As per the current FDI policy, 100 per cent overseas investments are permitted in the defence industry — 49 per cent under …

FDI investments in India grew by 20% in 2020: PM Modi at Indo-US trade summit
4 years, 5 months ago

FDI investments in India grew by 20% in 2020: PM Modi at Indo-US trade summit

India Today  

Prime Minister Narendra Modi while addressing the 'India Ideas' summit on Wednesday said that India has managed to attract 20 per cent more FDI than it did in 2019. While recounting India's achievements, PM Modi said, "Every year, we are reaching record highs in FDI. Reforms have ensured increased competitiveness, enhanced transparency, expanded digitization, greater innovation and more policy stability," …

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