FDI cap on insurance to stay: Government official
The sectoral foreign direct investment (FDI) cap on insurance was likely to stay till the time a political consensus evolved, a government official said.
By PTI |
KOLKATA: The sectoral foreign direct investment (FDI) cap on insurance was likely to stay till the time a political consensus evolved, a government official said.
The FDI cap at 26 per cent in the insurance sector would stay for the moment, Anup Pujari, Joint Secretary, Department of Economic Affairs, Ministry of Finance told reporters on the sidelines of a business summit organised by AMCHAM here on Saturday.
Asked what view the government was taking on lifting it to 49 per cent as sought by insurance companies, Pujari said it was under consideration, but everything would depend upon emergence of a political consensus.
He also added that 26 per cent was not small. When pointed out that insurance companies would need capital for expansion, Pujari said there was no dearth of capital in any sector.
Although 80 per cent of FDI routed to India came through the automatic route, the government had put sectoral caps on insurance, banking and telecom.
Pujari said the government was open to any amount of money inflow into the country either through FDI or portfolio investments route. The idea was to encourage more FDI rather than portfolio investments, he said.
Talking about outward investments, he said the government believed that Indian companies should make assets abroad.
On appreciation of the rupee vis-a-vis the dollar, Pujari said this might have made exporters unhappy, but the government had been able to contain inflation even as the price of crude touched almost US$ 100 per barrel.
The FDI cap at 26 per cent in the insurance sector would stay for the moment, Anup Pujari, Joint Secretary, Department of Economic Affairs, Ministry of Finance told reporters on the sidelines of a business summit organised by AMCHAM here on Saturday.
Asked what view the government was taking on lifting it to 49 per cent as sought by insurance companies, Pujari said it was under consideration, but everything would depend upon emergence of a political consensus.
He also added that 26 per cent was not small. When pointed out that insurance companies would need capital for expansion, Pujari said there was no dearth of capital in any sector.
Although 80 per cent of FDI routed to India came through the automatic route, the government had put sectoral caps on insurance, banking and telecom.
Pujari said the government was open to any amount of money inflow into the country either through FDI or portfolio investments route. The idea was to encourage more FDI rather than portfolio investments, he said.
ADVERTISEMENT
Talking about outward investments, he said the government believed that Indian companies should make assets abroad.
On appreciation of the rupee vis-a-vis the dollar, Pujari said this might have made exporters unhappy, but the government had been able to contain inflation even as the price of crude touched almost US$ 100 per barrel.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
