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September 30, 2014updated 13 Apr 2017 8:34am

Indian insurance industry requires $8.13bn of capital infusion, says IRDA

Indian insurance industry will require INR500bn ($8 billion) capital injection that can be fulfilled by opening the sector for foreign direct investment (FDI).

By Verdict Staff

Insurance Regulatory Development Authority (IRDA) chairman TS Vijayan was quoted by IANS as saying that the regulator welcomes any type of capital infusion.

"If foreign capital is increased, it will be easier flow of capital than all put together by Indians," Vijayan told the publication.

"We are not saying FDI has to come. Capital is required and Indians may not have that much ability to put all the capital," he added.

He said since the bill for 49 percent FDI in insurance sector is in parliament, there will be some action only after it is passed.

The Insurance Laws (Amendments) Bill, 2008, which seeks to raise the FDI limit in the sector to 49% from the current 26%, was referred to a select committee of parliament last month.

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