Pitching for higher foreign direct investment limit in India's insurance sector to 49 per cent, a global body of insurers has said the hike will generate more jobs and enhance the country's standing in global financial markets.
In a letter to Prime Minister Manmohan Singh, Global Federation of Insurance Associations has said the global insurance industry is ‘most encouraged’ to learn that the government intends to bring up Insurance Laws (Amendment) Bill, 2008, for consideration in the current session of Parliament.
"You and your colleagues in government will have an important role to play in moving forward this long awaited legislation. . .," said GFIA.
The federation, which was formed in October 2012, claims to represent 32 member associations accounting for about 88 per cent of premium collection.
The letter said GFIA support approval of these measures as ‘we are convinced’ that it will help to strengthen the capabilities of the industry to serve the needs of Indian consumers and the public.
Increasing FDI ceiling will help in expanding availability of new products and services; generate new job opportunities; support investment in infrastructure; and enhance India's standing in global financial markets.
Copy of the letter has been marked to the Finance Minister, Commerce and Industry Minister and Leaders of Opposition in Parliament, among others.
The Bill seeks to raise foreign investment cap in the sector from 26 per cent to 49 per cent.
The standing committee on finance headed by senior Bharatiya Janata P leader Yashwant Sinha did not favour hike in FDI ceiling, indicating wide opposition to this move.