Insurance Industry And the India Government

In the 2014 Budget ,  Finance Minister  Arun Jaitely has given a lift to the insurance industry by soliciting 49 percent of  Foreign Direct Investment in the industry ,which was earlier 26 percent.Despite of  a continuous disagreement by the opposition,the NDA government got the oppositions support for the same.It is said that FDI can negatively affect the regulators of the industry but, on a longer go it is important to have investments in an investment starving industry like Insurance Industry.

Some of the leading players in the market are LIC, ICICI, HDFC etc and out of this LIC has the largest market share.Foreign Direct Investment as mentioned above has pros and cons. FDI increases the faith of  foreign investors in india’s economy. The regulators has a fear that the authority will be taken away  from them but FDI was given ti the foreign investors in the condition that, the management and control of the companies must be with Indians.

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