Washington, April 17
Two influential US lawmakers have applauded the Indian government’s move to increase foreign direct investment in the insurance sector from the existing 49 per cent to 74 per cent, saying it will further deepen bilateral trade and investment.
India’s Parliament last month passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector.
“We are very encouraged by the inclusion of a proposal to raise the limit on foreign direct investment in the Indian Insurance sector from 49 per cent to 74 per cent,” Congressman Brad Sherman and Steve Chabot said.
“This long-awaited reform holds the promise of expanding insurance coverage for Indian consumers and businesses, promoting both financial inclusion and economic resilience in India,” they said.
Sherman is the Democratic Co-Chair of the House Caucus on India and Indian-Americans. Chabot is the Republican Co-Chair of the Caucus.
In a letter to the Indian Ambassador to the US, Taranjit Singh Sandhu, the two lawmakers said that such a move proposed in the recent annual budget would also increase the availability of capital to support India’s ambitious infrastructure goals.
Finally, in addition to advancing Indian economic development, this reform would further deepen US-India trade and investment ties at a critical moment for bilateral relations. PTI