NEW DELHI: The section for marketing of internal and industry transaction (DPIIT) has advised that the government’s determination to raise the foreign direct investment (FDI) limit in the insurance industry under the automatic path to 75 percent from 49 percent before.
As per a press notice issued by the section, the determination will take effect in the date of FEMA (Foreign Exchange Management Act) notification.
The Insurance (Amendment) Bill, 2021, has been passed by Parliament in March.
The Bill amended the Insurance Act, 1938.
FDI in the insurance industry was raised from 26 percent to 49 percent in 2015.
The statement for hiking the FDI limitation was created at the Union Budget 2021-22 about February 1.
The new agreement is anticipated to benefit 23 personal life insurance companies, 21 private transportation insurance providers and seven licensed personal medical insurance businesses.
DPIIT Informs 74% FDI cap in insurance sector under automatic route
