Growth In India's Insurance Sector Linked To FDI Reforms: Sitharaman Tells Prudential Chair

The growth in India's insurance sector is linked to reforms in foreign direct investment policy, Finance Minister Nirmala Sitharaman said, during her interaction with Shriti Vadera, the chair of British-domiciled insurer Prudential Plc in London.

"The Union Finance Minister mentioned the growth in insurance sector in India owing to the reforms in FDI policy, and emphasised on the need to focus on reinsurance and third party insurance in addition to health insurance and other products," the finance ministry said in a statement shared on social media platform X.

Sitharaman's meeting with Vadera comes after Prudential announced on Feb. 12 that it is evaluating a potential listing of ICICI Prudential Asset Management Co. This could involve partially divesting its shares through an initial public offering.

Notably, Sitharaman arrived in London on Monday evening for a six-day official tour of Europe.

During her meeting with the Prudential chair, Sitharaman apprised her of the opportunities in India’s maiden International Financial Services Centre at GIFT City and "encouraged Prudential to explore deeper engagement with the ecosystem there, including in areas such a global reinsurance services as well considering GIFT City services for global fund management for investing in India", the finance ministry said.

Vadera informed Sitharaman about Prudential's upcoming venture in the health insurance space in India and spoke about engaging more with GIFT City for exploring investment and fund management opportunities in India, the statement added.

Sitharaman also underlined the potential areas for collaboration between the UK and India, especially in the domain of business and investments, and also including private equity and venture capital investments, asset management and financial services and insurance.

The interaction also involved discussions around the recent budget announcement including those related to supporting the expansion of India’s Global Capability Centres.