How merely a change of rule can draw more FDI in sectors like insurance

Despite the presence of 24 life insurance companies and 34 non-life companies, the needle of insurance penetration in the country has hardly moved over the years

On Friday Prime Minister Narendra Modi met ministers and top officials of the finance and commerce ministries and discussed strategies to attract more foreign investments into India. This was necessary, and timely too. It was also a reminder that even though India had drawn $286 billion in investments between 2014-15 and 2018-19, a 51 per cent jump over the previous 5-year period, the government still felt it necessary to alter policies to attract more investments.

However, there is no need to change policies in many cases. The sectors that can draw most investments are those where entrenched domestic interests maintain the