DEAR FRIENDS,
The Government has just announced that it will allow 51% foreign direct investment (FDI) in multi-brand retail and aviation. On the occasion of this announcement, Prime Minister Manmohan Singh said, “The Cabinet has taken many decisions today to bolster economic growth and make India a more attractive destination for foreign investment. I believe that these steps will help strengthen our growth process and generate employment in these difficult times.”
However, there was no news on increasing the FDI limit in the insurance sector. Many experts in the industry believe that currently the insurance amendment bill is not a high priority for the government and therefore it has not been taken up. Insurance companies in both life and non-life industry have been closely watching every step of the government related to raising the FDI ceiling in key sectors. Many companies have even delayed their Initial Public Offering (IPO) in hopes to get a better valuation once the FDI cap is raised.
Even though the top bosses in insurance companies understand that it is very difficult to get the opposition’s nod on increasing the FDI cap in the insurance sector, their hopes are still pinned on the government. With government’s decision to allow FDI in multi-brand retail and aviation, the day seems not too far when a similar reform will be taken for the insurance sector.
Finance minister P Chidambaram had cleared the proposal to raise the ceiling for FDI to 49 per cent from the existing 26% in the insurance and pension sector in the last week of August 2012. The proposal is with the cabinet currently to be cleared and discussed in the winter session of the parliament.
Friends and All the employees' in the Insurance sector now time has come once again to please gear up your selves for stop raising ceiling for FDI in insurance sector by F.M.. Protect the Insurance Sector by re-dedicating yourself for the Growth of both Life and Non-Life. Unity is Strength.
.....Editor
The Government has just announced that it will allow 51% foreign direct investment (FDI) in multi-brand retail and aviation. On the occasion of this announcement, Prime Minister Manmohan Singh said, “The Cabinet has taken many decisions today to bolster economic growth and make India a more attractive destination for foreign investment. I believe that these steps will help strengthen our growth process and generate employment in these difficult times.”
However, there was no news on increasing the FDI limit in the insurance sector. Many experts in the industry believe that currently the insurance amendment bill is not a high priority for the government and therefore it has not been taken up. Insurance companies in both life and non-life industry have been closely watching every step of the government related to raising the FDI ceiling in key sectors. Many companies have even delayed their Initial Public Offering (IPO) in hopes to get a better valuation once the FDI cap is raised.
Even though the top bosses in insurance companies understand that it is very difficult to get the opposition’s nod on increasing the FDI cap in the insurance sector, their hopes are still pinned on the government. With government’s decision to allow FDI in multi-brand retail and aviation, the day seems not too far when a similar reform will be taken for the insurance sector.
Finance minister P Chidambaram had cleared the proposal to raise the ceiling for FDI to 49 per cent from the existing 26% in the insurance and pension sector in the last week of August 2012. The proposal is with the cabinet currently to be cleared and discussed in the winter session of the parliament.
Friends and All the employees' in the Insurance sector now time has come once again to please gear up your selves for stop raising ceiling for FDI in insurance sector by F.M.. Protect the Insurance Sector by re-dedicating yourself for the Growth of both Life and Non-Life. Unity is Strength.
.....Editor
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