Budget 2013: Hiking FDI limit in insurance will be positive for sector, says Care Research

NEW DELHI: Looking forward to a hike in Foreign Direct Investment (FDI) in insurance sector to 49% from the current 26%, Care Research has said that a move in that direction in Budget 2013 session will help attract foreign funds.

Stating that the likelihood of the increased limit being approved is medium, Care research said that it will be a positive move for the sector as a whole. According to Care, the hike in FDI in insurance will help companies like HDFC, Religare, Bajaj, Bharati and Reliance Capital.

Finance Minister P Chidambaram in January discussed the issues concerning regulatory environment and deliberated on steps which could be taken in the Budget in a meeting with financial sector regulators.

The financial sector regulators who attended the meeting include Reserve Bank Governor Duvvuri Subbarao, Pension Fund and Regulatory Development Authority (PFRDA) Chairman Yogesh Aggarwal, Insurance Regulatory and Development Authority ( IRDA) Chairman J Harinarayan and secretaries in the Finance Ministry.

Chidambaram will present the Budget proposals for 2013-14 in the Lok Sabha on February 28.