The government on Wednesday notified 100 per cent FDI in insurance intermediaries which was announced in the Budget in July this year. The notification was issued by Department of Financial Services of the Finance Ministry.
Piyush Goyal,Commerce and Industry Minister,while announcing the government's decision to notify the 100 per cent FDI in insurance intermediaries on Wednesday, had said soon ministry of finance would at an appropriate time would start discussion to review the FDI limit, currently at 49 per cent, in the overall insurance sector.
“We are notifying 100 per cent FDI in insurance intermediaries and and MoF would soon start discussion at an appropriate time about reviewing the FDI in the overall insurnace sector,'' he said.
To help revive economic activity by attracting more foreign direct investment (FDI), the Union Cabinet on Wednesday relaxed several rules in areas such as single-brand retail, contract manufacturing, coal mining and digital media. Most of the decisions taken on Wednesday are in line with the announcements made in the Union Budget last month.
The Union Cabinet has also approved setting up of 75 government medical colleges in areas where no such colleges exist.The Cabinet announced establishment of 75 new medical colleges by 2021-22 with an investment of Rs 24,375 crore. The proposed new medical colleges will add 15,700 MBBS seats in the country. There are currently 70,978 MBBS seats in 529 colleges in India.
To improve India’s disaster preparedness, the Cabinet also approved the establishment of an International Coalition for Disaster Resilient Infrastructure along with its supporting secretariat office in New Delhi. Prime Minister Narendra Modi will launch the CDRI during the UN Climate Summit in New York on 23 September.
Among measures to boost foreign direct investment (FDI) in India, Finance Minister Nirmala Sitharaman, in her maiden budget speech,on July 5, had proposed permitting 100 per cent FDI for insurance intermediaries.
The FDI limit was set at 49 per cent till now. Industry had said the move to allow 100 per cent FDI for insurance intermediaries is a positive one and will help in the long-term and holistic development of the industry.
The government has been considering the proposal for 100 per cent FDI in insurance intermediaries for the past two years.
The insurance regulator was also in favour of the move. The FDI hike could also boost use of newer technologies, according to industry experts.