What Insurance Sector Wants from Budget 2012
Raising the Cap on FDI
Insurance being a capital-intensive business, it requires capital inflow on standard basis for its operational requirements. Capital market and foreign direct investment are two chief foundation of capital in any industry.
Several insurance companies would prefer to invite foreign partners to elevate their stake. Raising the cap to 49 percent will offer sufficient incentive to foreign companies to invest in Indian insurance sector. This will generate necessary capital in the industry and help the sector develop much quicker.
In the past decade India has recognized itself as a world leader on quality healthcare. Raising healthcare expenditure as a sizeable portion of the Gross Domestic Product will further aid development of the sector.
