Lifting the limits: raising the cap on foreign investment in India

Rasaad Jamie

The incumbent Indian government is proposing to lift the limits on foreign direct investment (FDI) in the insurance sector from 26% to 49%. However, the proposals will not come into effect until the Insurance Bill is passed. Over the years, previous Indian governments have made the same promise, but according to the incumbent finance minister, Arun Jaitley, unlike previous governments, and particularly unlike the previous United Progressive Alliance government, there were no internal disagreements around the issue within the current National Democratic Alliance government and all steps taken by the Ministry of Finance had the support of the prime minister, Narendra Modi, and his office. It is understood the bill has been sent for consideration to a select committee, which will submit its report at the next session of parliament in November where it will be voted on.