Foreign direct investment in insurance sector in India: An evaluation

Foreign Direct Investment (FDI) in Insurance Sector in India is a much talked-about subject today. The then UPA government hiked the limits and relaxed rules for FDI in Insurance Sector for wooing foreign investors to invest in this sector. The Insurance Sector in India has undergone transformational changes over the last decade. Liberalization has led to the entry of the largest insurance companies in the world, who have taken a strategic view on India being one of the top priority emerging markets. A lot of international companies have been waiting to enter India and opening up of the sector will give them an entry point. Now the question is whether the entry of international companies in this sector will endanger the existence of insurance business in our country. In this backdrop, an attempt has been made in this paper to study and evaluate the ‘FDI Policy’ with regard to Indian Insurance Sector in India and its impact thereon.