Hike in Foreign Direct Investment (FDI) cap in the insurance sector to 49% has already attracted about Rs. 1,186 crore, for this fiscal. The Reserve Bank of India (RBI) had notified everyone in April 2015 about the increase in FDI limit in the insurance sector to 49%.
The industry estimates an estimated inflow of Rs 44,500 crore in the insurance sector for the next 5 years, of which Rs 21,805 crore is expected to be through foreign partners. As soon as these regulations were announced, insurance companies in India started discussions with their foreign partner. Recently, Standard Life (foreign partner) of HDFC Life Insurance announced stake hike in their joint venture.
