New Delhi: India is considering further opening up its insurance and aviation sectors to foreign investors to help spur the economy, according to people familiar with the matter.
The Finance Ministry has suggested increasing the limit on foreign direct investment in insurance and pension companies to 74% from the present 49% and allowing foreign airlines to own Indian carriers, the people said, asking not to be identified as the plan is not public.
It also wants to allow 100% foreign investment in railway operations, education, and rental housing management companies, the people said. FDI is currently prohibited in railway operations.
The government wants to increase the amount of FDI to as much as 6% of gross domestic product, the people said, compared with less than 2% now.
A spokesman for the Finance Ministry wasn’t immediately available to comment.
Prime Minister Narendra Modi wants to double the size of the economy to $5 trillion by 2025. With government revenue under pressure amid an economic slowdown, authorities are banking on private investment to drive growth.
10/01/20 Abhijit Roy Chowdhury/Vrishti Beniwal/Print
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The Finance Ministry has suggested increasing the limit on foreign direct investment in insurance and pension companies to 74% from the present 49% and allowing foreign airlines to own Indian carriers, the people said, asking not to be identified as the plan is not public.
It also wants to allow 100% foreign investment in railway operations, education, and rental housing management companies, the people said. FDI is currently prohibited in railway operations.
The government wants to increase the amount of FDI to as much as 6% of gross domestic product, the people said, compared with less than 2% now.
A spokesman for the Finance Ministry wasn’t immediately available to comment.
Prime Minister Narendra Modi wants to double the size of the economy to $5 trillion by 2025. With government revenue under pressure amid an economic slowdown, authorities are banking on private investment to drive growth.
10/01/20 Abhijit Roy Chowdhury/Vrishti Beniwal/Print
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