Govt to bring legislation next month hiking FDI limit in Insurance

New Delhi, Jan 18 (UNI) UK Chancellor of Exchequer Gordon Brown today said he had been given an indication that the UPA government will bring in a legislation next month to hike FDI limit in the insurance sector from 26 per cent to 49 per cent.

''Mr Chidambaram indicated to me that a bill will be introduced in Parliament next month to increase FDI limit in insurance to 49 per cent from 26 per cent,'' Mr Brown told reporters after he and Finance Minister P Chidambaram launched the India-UK Economic and Financial Dialogue.

Mr Brown said that he has also been told by Mr Chidambaram that companies with a unique structure like the London-based LLyods would be allowed to offer re-insurance services in India.

The Finance Minister, however, sought greater freedom for Indian banks to operate in the United Kingdom.

''We hope the UK will give more licences to Indian banks,'' Mr Chidambaram said.

Stating that Standard Chartered Bank of Britain was the largest foreign bank in India, Mr Chidambaram expressed hope that it will continue to grow organically.

At the launch of financial dialogue, the two-sides discussed ways to root-out sources of terrorist funding.

Mr Chidambaram said India has emerged as the second largest investor in the United Kingdom in terms of the number of projects.

In fact, he said, FDI flows from India to the United Kingdom have exceeded those from the United Kingdom into India since 2004.

''India and the United Kingdom have revitalised cooperation in scientific research and sought ways to link science and innovation with enterprise. We feel time is ripe to expand collaboration in knowledge-based industries and to stimulate greater investments in India by both large cooperations and small and medium enterprises,'' he said.

Today was the first official level meeting of the India-UK Economic and Financial Dialogue, established by the two nations in February 2005 in pursuance of the India-UK Joint Declaration signed by the Prime Minister Manmohan Singh and British Prime Minister Tony Blair.

The objective of the 'Dialogue' will serve as a forum for having regular discussions on bilateral and global issues on financial system and as the instrument to enhance economic and financial cooperation.

Mr Chidambaram said India attached great importance to its traditionally warm and friendly relations with the UK and was keen to intensify the multi-dimensional Indo-British cooperation.

UNI