Kathmandu. The Department for Promotion of Industry and Internal Trade (DPIIT) has allowed foreign direct investment (FDI) up to 100 per cent under the automatic route in India’s insurance sector.
This arrangement is expected to bring significant changes in the ownership policy for insurers operating in the country. Under the revised framework, foreign investors will no longer need prior government approval to acquire full ownership of an insurance company of India.
The move is expected to effectively remove the previous foreign investment cap and facilitate greater capital inflows into the market, increased competition and potential expansion.
