Budget 2014: 49% FDI in insurance sector a welcome initiative, says KK Mishra

Finance Minister Arun Jaitley, while presenting the Union Budget in Parliament today said that FDI in insurance sector will be hiked to 49 per cent from 26 per cent.

KK Mishra, MD and CEO, Tata AIG General Insurance welcomed this move, saying that once approved, this would encourage foreign investments and will further augment the free flow of knowledge and intellectual cross fertilisation, benefiting the insurance sector as a whole; right from product innovation, distribution & in building robust customer service mechanisms.

This move is expected to enable many promoters of Indian companies to sell their shares as well infuse new capital in the firms. This long awaited move is also expected to enable listing of a few insurers.