The Commerce and Industry Ministry today notified 49 per cent foreign direct investment (FDI) under automatic route in insurance and pension sector.
The announcement regarding this was made by Finance Minister Arun Jaitley in his Budget speech.
In a press note, the Department of Industrial Policy and Promotion (DIPP) said the government has liberalised its FDI policy in insurance and pension sector.
Press notes are official documents issued by DIPP through which new FDI policies or changes in existing ones come into effect.
Earlier, only up to 26 per cent FDI was permitted through the automatic approval route. For FDI up to 49 per cent, the approval of the Foreign Investment Promotion Board was required.
There are 52 insurance companies operating in India, of which 24 are life insurance business and 28 in general insurance.
During April-December 2015, FDI into the country grew by 40 per cent to USD 29.44 billion.
