Bill To Increase Foreign Investment To 74% Moved In Lok Sabha

The amendment bill, that seeks to hike the FDI limit in insurance from 49 per cent to 74 per cent, was passed by the Rajya Sabha last week.

Finance Minister Nirmala Sitharaman said on Monday that raising the FDI limit in the insurance sector to 74 per cent was necessary to help insurers deal with issues concerning financial stress. She said this while moving the Insurance (Amendment) Bill, 2021 for consideration and passage in the Lok Sabha. The amendment bill, that seeks to hike the FDI limit in insurance from 49 per cent to 74 per cent, was passed by the Rajya Sabha last week. The insurance companies are facing solvency related issues, she said, adding, "if growth capital is hard to come by, there will be a stress situation. In order that the stress situation is not left unattended, we need to raise the FDI limit."