Indian partners in insurance joint ventures might have been less gung-ho than previously believed about raising the ceiling for foreign direct investment (FDI) in the sector.
A WikiLeaks cable originating from American diplomatic sources based out of Mumbai suggested that domestic partners might be lobbying against raising the FDI cap. “Many industry representatives believe that some domestic partners, especially the more established firms, no longer need the additional foreign capital, and some may be working against the lifting of the FDI cap behind the scenes,” said the cable dated August 7,2009; id: 09MUMBAI328_a).
The cable included inputs from a number of officials in the sector on the matter. It quoted Saibal Choudhury of MetLife Insurance, who suggested that opponents want to include portfolio investment or foreign institutional investment (FII) under the raised FDI cap. While MetLife declined to comment, Choudhury could not be reached for one.
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