The Indian government has approved a new bill that allows foreign investors to take a bigger participation in domestic insurance companies then before. From 26 percent to 49 percent. Only the communist party opposed against this proposition and cancelled its support to the government. Multinational insurers would then be free to move into a market from which twenty percent of the population are uninsured. They are very eager to explore this rapidly growing, developing market where almost nine on ten workers doesn’t even have a pension scheme.
The Indian government also hopes that the easier ownership for foreigners will also attract the much needed capital that can feed the growing economy because insures would be able to pull 12 billion dollar from the Indian markets.
In my opinion this is a very wise decision of the Indian government to allow foreign investors because the Indian people also have the right to insure themselves. And now the market soon will be opened for globalization they will be able to have a bigger choice to select insurances and most likely also a better price to buy one. This is a good step towards a better society because the insurances will give the Indian people a safer and better life.
Source: http://news.bbc.co.uk/2/hi/business/7702207.stm
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