India to lift 26% FDI cap

Asia

The Indian government has committed to further opening up the country’s insurance and reinsurance market and in talks with the UK’s Chancellor Gordon Brown said it would lift the cap on foreign direct investment in the sector to 49% from the 26% cap in place since 2000 when the market first opened to foreign investors. "Finance minister P Chidambaram indicated that a bill will be introduced in parliament next month to increase FDI limit in insurance to 49%”, Mr Brown said. He added that UK firms, including Lloyd’s, will be able to provide reinsurance in the country under a new bill expected to be introduced towards the end of February.