Jun. 23 – India is considering lifting its foreign direct investment cap on the insurance sector from 26 percent to 49 percent according to Finance Minister Pranab Mukherjee.

“We have committed to allow 49 percent and the necessary legislation is pending before the House, as the leg process will be completed it will be done…in a year or so.” Pranab Mukherjee told NDTV during an Indo-U.S. CEO forum in Washington.

The Insurance Amendment Bill aims to raise the FDI cap for the industry to 49 percent but has been awaiting approval since 2008. The bill was hampered by strong opposition from Left allies.

If the bill is finally approved, it will help local companies shore up more funds to expand the business despite industry losses.

“This is especially beneficial for Insurance intermediaries, especially insurance brokerage houses. Currently, the insurance market is in turmoil here and this should add a new impetus to the industry,” he adds.