The U.S.-India Business Council (USIBC) has termed the insurance reform law of India as crucial for the long term growth and prospect of the country. It would also impact favorably the lives of the millions of Indians, it added.
The Council consisting of 325 top-tier Indian and U.S, companies lauded the key provisions of the Insurance Laws Amendment) Act which enhanced the cap of foreign direct investment (FDI) to 49% from 26%. It added that with the opening of the insurance sector, India has sent a clear signal that the country was open for business. The USIBC president Dr. Mukesh Aghi said that he commended Prime Minister Modi and his cabinet along with the opposition leaders for their relentless efforts to see the bill through. He added that the insurance sector of India had achieved impressive growth in the recent past, but the FDI cap of 26% was creating impediments in the path. Now that the FDI cap had been enhanced to 49% would further facilitate growth in the insurance sector. He further added that the access of long term domain capital of domestic and foreign pool will bring financial stability. It would also increase the capacity of the industry to reach out to more citizens of the country, and protect their lives and productive assets. The insurance law would lead to betterment of the lot of common Indian people residing in rural as well as urban areas. Mukesh added that USIBC would continue to be a close partner in the India’s long march to economic excellence. The council viewed the bill as an instrument of sea-change in the economic condition of India.