Proposed FDI hike in Insurance will fuel growth, says AGI

New Delhi, Apr 27 (UNI) Coming in full support for the proposed FDI cap in the insurance, the AIG today said the move in a big way would lead to a robust growth and ncrease employment opportunities in the sector.

''If the government increases the FDI in insurance, it will lead to the growth of this sector at an excess 100 per cent in both urban and rural market,'' said American International Group (AIG) Country Head and Chief Executive Sunil Mehta on the sidelines of a function, adding that it will provide employment opportunities to about 1.5 million people.

Insurance industry growing at a rate of 10-15 per cent per year, registered a 100 per cent growth last year. No other industry has witnessed such growth, so the government should take appropriate steps in amending the legislation in the FDI, said Mr Mehta.

He opined that if the government gives a go-ahead to the proposed legislation more funds would be avilable for infrastructure projects.

Well known economist and JNU Vice-Chancellor B B Bhattacharya also supported the increase in the ceiling.

''The hike in the insurance sector is acceptable provided the government also ensures that their is proper regulation and protection policy for the consumers by the foreign investors,'' Mr Bhattacharya said.

The government is considering a proposal to hike the limit on foreign investment in insurance sector from 26 per cent to 49 per cent.

However, no time limit has been set for taking decision on it as the consultions with industry and stakeholders are underway.

UNI