|
| Aviva keen on raising FDI in Indian venture to 49% |
| Press Trust Of India / New Delhi Jul 06, 2009, 00:39 IST |
|
 A day before Budget, UK-based insurance firm Aviva today said it is keen on raising FDI to 49 per cent in the Indian venture subject to policy liberation.
“Both Dabur and Aviva remain fully committed to growing the India operations and will infuse capital, based on the business requirement. We eagerly look forward to the Foreign Direct Investment (FDI) limit going up to 49 per cent,” said Aviva India CEO and Managing Director T R Ramachandran.
Aviva India is 74:26 joint venture with FMCG major Dabur and UK-based Aviva Plc. Insurance is capital intensive and a long-term gestation business, Ramachandran said, adding, as a result, capital is critical to both the sustenance and growth of the industry.
Increasing the FDI limit would help the insurance sector to further expand, launch innovative distribution channels, upgrade technology, enhance the current product portfolio and bring in global best practices, he said.
In addition, it will also benefit the Indian economy, he said, adding a simple calculation shows that raising the FDI limit to 49 per cent will almost double the total FDI in the life insurance industry from the current levels of approximately Rs 5,600 crore.
Hiking the FDI limit would promote further capital inflows into the market and help develop the market, said Ramachandran.
Under the present regulation, a foreign firm is allowed to have 26 per cent stake in an insurance venture.
A bill to amend Insurance Laws to raise the FDI limit to 49 per cent from existing 26 per cent is pending in Rajya Sabha and the issue would be taken up by the Upper House after receipt of the report of the Standing Committee.
At the same time, Insurance regulator IRDA has sought bringing about level-playing field between unit linked investment products of life insurers and mutual fund schemes in terms of service tax in the Budget. “We would like level-playing field in terms of service tax between ULIP and mutual fund schemes,” Insurance Regulatory Development Authority (IRDA) Chairman J Harinaryan had said.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
