Trend of FDI in Life Insurance Sector in India

Abstract

FDI plays a vital role in the economy because it does not only provide opportunities to host countries to enhance their economic development but also open new vistas to home countries to optimize their earnings by employing their ideal resources.The insurance sectors playing a vital role in both Indian and Global markets. The Insurance sector in India has a great potential even during the downtrend and FDI flow is expected to rise in the near future. Foreign Direct Investment (FDI) was allowed in private insurance companies in India, under an act of IRDA with a limit of foreign equity of 26%. The govt. of India passed the IRDA Bill-2008 in the parliament and increased the FDI in Insurance sector up to 49 percent. The Insurance sector in India has a great potential even during the downtrend and FDI flow is expected to rise in the mere future. This Paper mainly focus on the Foreign Direct Investment in the life Insurance sector and its significance in insurance sector in India This paper attempt to current status of FDI in life insurance sector in India.The positive role of FDI in Insurance sector in India.