Question
The government is considering the increase in FDI limit
and easing FDI regulations in insurance. What is the current FDI limit in insurance sector in India?Solution
The FDI limit in insurance sector is currently 74%. A higher FDI limit would particularly benefit the long-term, capital-intensive life insurance business. Promoter companies need to continually invest to meet solvency requirements mandated by the regulator before the company starts generating profits. This means only deep-pocketed promoters can successfully enter and sustain operations in this sector.
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Which of the following is a video format?
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