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CII urges the government to increase FDI caps on insurance
By siliconindia
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Wednesday, 21 July 2010, 23:37 IST
Mew Delhi: The Confederation of Indian Industry (CII) urged the government to increase the foreign direct investment (FDI) in insurance and banking sectors to enable financing of the high growth in the economy. The apex industry body also asked the government to take adequate steps for creating a deep and vibrant corporate debt market, reports K.R. Srivats of Business Line.
These suggestions formed part of a 10-point agenda that the CII President, Mr Hari S. Bhartia, presented to a high-powered panel of Secretaries here. The CII's agenda was aimed at taking India to 10 per cent GDP growth on a sustainable basis by 2014.
At a closed door meeting with the Cabinet Secretary, Mr K.M. Chandrasekhar, and other senior Secretaries of various Ministries, Mr Bhartia is understood to have stressed the need to hike FDI on insurance to 49 per cent from the current limit of 26 per cent.
There have been very little progress on the insurance FDI front and the Bill providing for enhanced FDI limit of 49 per cent was still pending before Parliament, it was pointed out.
A case was also made for allowing FDI in multi-brand retail, sources said.
With the monsoon session of Parliament set to commence early next week, there are indications that the Government would take steps to get the insurance laws amendment Bill enacted and pave the way for higher FDI in insurance sector.
The 10-point agenda included increased focus on agriculture productivity, significant improvement in primary and secondary level education and also flexible labour rules and easier exit policy to enable 11-12 per cent long-term growth in manufacturing sector.