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FDI limit in insurance may be raised

Finance Minister Mr. P. Chidambaram has hinted that the FDI limit in the insurance sector will be raised from 26% to 49%, and that it would be passed by Parliament in this government's term itself.

Apnainsurance.com Research Bureau

12 Jul 2008

Finance Minister Mr. P. Chidambaram has hinted that the FDI limit in the insurance sector will be raised from 26% to 49%, and that it would be passed by Parliament in this government's term itself.

The Parliamentary Standing Committee, which had objections to one or two clauses, has already passed the bill. The Left parties, which have been opposing government's proposal, have already withdrawn their support to the UPA government.

Insurers now look forward to July 22 - expecting the government to raise the limit once they pass the trust vote in the Lower House.

Mr. Pranab Mukherjee, External Affairs Minister, heads the Group of Ministers looking at this issue. It had earlier failed to reach any sort of consensus because of the Left's opposition.