Aviva Plc expects India to increase its contribution to its global balance sheet with a hike in foreign direct investment (FDI) to 49 per cent in joint ventures. | |
| The Union Budget has proposed to increase FDI in insurance ventures to 49 per cent from the current 26 per cent. |
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| "Today, India contributes about a quarter per cent of total new premium income since we can only account for 26 per cent of the Indian joint venture's business on our books," Philip Scott, group executive director of Aviva Plc, spoke from London. |
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| The UK-based Aviva, which declared its global results for the first half of the year, expects its Indian operation to grow at a fast pace and contribute 5 per cent to its global balance sheet in five years. |
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| Aviva's global sales grew by 7 per cent to 7,889 million pound sterling in the first six months of 2004, while its operating profit was up 37 per cent to 1,130 million pounds. |
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| Aviva India, a 26:74 joint venture with Dabur, posted more than 400 per cent growth in premium income at Rs 77 crore in fiscal 2004 compared with Rs 18 crore in 2002-03. In the first quarter of this year, its premium income stood at Rs 33 crore compared to Rs 7.14 crore during the corresponding period last year. |
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| Aviva Plc's outsourcing operations in India are expected to grow and plans are afoot to have 3,800 people on the ground by the year-end, said Scott. |
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