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Rajya Sabha passes the Insurance Bill

FDI cap in insurance increased from 26% to 49%

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1 min 46 secs
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Last Updated - May 16, 2023
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The long-pending insurance bill for raising the foreign investment limit from 26% to 49% has been approved. This move is one of the first major economic reforms by the ruling government that is expected to bring huge foreign inflows in the country.

In spite of a strong opposition by parties such as Trinamool Congress and Left, the NDA government successfully managed to gain a nod for the insurance bill by Rajya Sabha. The insurance bill which was first introduced in 2008 was being opposed strongly by parties as they feared it will disrupt the growth of domestic companies. But, majority players of the cash-starved insurance industry were eagerly waiting for the clearance of this bill as it would bring in the much needed capital infusion.

With the increase in foreign cap to 49%, we at MyInsuranceClub are optimistic that the insurance industry (both life insurance and general insurance) will experience a healthy growth in the coming years.

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