DPIIT notifies 100% Foreign Direct Investment in Insurance Intermediaries
The Department for Promotion of Industry and Internal Trade (DPIIT) operating under Ministry of Commerce and Trade has amended the FDI (Foreign Direct Policy) to allow 100% foreign investment for insurance intermediaries. This includes insurance companies, third party administrators, insurance brooking, loss assessors and surveyors.
Initially DPIIT had allowed only 49% of FDI in the insurance sector. This has now been increased to 100% to increase Ease of doing business in the insurance sector. With this move, the foreign companies shall easily buy stakes in Indian Insurance Companies.
The 100% FDI in Insurance Sector was announced by Finance Minister Nirmala Sitaraman in the Budget 2020-21. This is essential because, according to UNCTAD (United Nations Conference on Trade and Development) World Investment Report, 2019, India faced third consecutive annual decline in terms of FDI in 2019.
UNCTAD is a UN Body that deals with trade and investment. It was established in 1964. It also measures the Sustainable Development Goal set out by the member countries of the United Nations.
Category: Economy & Banking Current Affairs