Confederation of Indian Industry (CII) has welcomed the Cabinet's approval of the promulgation of the ordinance on Insurance Bill as a landmark reform measure to take forward the development agenda of the insurance industry in India.
"The increase in FDI limit from 26 to 49 percent will help attract the much needed long term capital for the sector and would have multiplier effect on the state of economy especially in meeting the huge infrastructure financing requirements," said CII Director General Chandrajit Banerjee.
He added that the long awaited reform will help create conducive environment for reviving investments and sustaining growth in the Indian insurance industry.
Government's decision to move forward on the reform even through the Ordinance route, ends the global as well as Indian anxiety and uncertainty over the provision of increase in foreign equity in Insurance amongst global as well as Indian Insurance companies.
The CII had strongly recommended the passage of the Insurance Laws (Amendment) Bill to be taken on priority in the winter session of parliament.