SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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100 %
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79%
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49%
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26%
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Detailed explanation-1: -Indian insurance industry was liberalized in 2015 to increase FDI limit to 49% from 26%. However, after the initial days of this amendment, the Indian Insurance Companies Rules 2015 prescribed that FDI investment up to 26% under automatic route was allowed.
Detailed explanation-2: -Parliament on March 22 passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49%. This measure was first announced by finance minister, Nirmala Sitharaman in the Union budget last month.
Detailed explanation-3: -Meanwhile, in pre-Budget expectations, insurance sector of the country has sought from the Budget to increase foreign direct investment (FDI) limit to 100 per cent from current FDI limit of 74 per cent as the insurers will get fresh capital.