Friday, March 3 2006 14:22 Hrs (IST) - World Time -

New Delhi: The UPA is confident of persuading its allies and Parliament for hiking FDI cap in insurance from 26 to 49 per cent to enable private insurers to grow faster, Finance Minister P Chidambaram said today(Mar 3,2006).

"How can the author of a law never be confident. There are differences. We are working on it. We are discussing it with our allies. I am confident that I can persuade them," Finance Minister P Chidambaram told reporters when asked how sure he was about selling the decision to the Government's allies.

However, he declined to give a time frame within which the FDI cap would be hiked.]

The Left parties, the UPA's key prop, are opposed to hike in FDI limit in insurance and opening up of pension sectors.

The Government, however, is drawing up a comprehensive bill on insurance and has already introduced it in Parliament to push forward pension reforms.

Addressing the US CEOs forum here, Chidambaram said, "The 26 per cent FDI is not an entry barrier but a barrier for expansion. I am confident that I can persuade Parliament (on hiking FDI in insurance). I invite US insurance companies to come to India."

Even with the present FDI regime, he said more US and Japanese companies are willing to enter the insurance sector.

He said the Indian insurance market continues to be untapped, as only 10 per cent of the population is insured.

On banking reforms, the minister said RBI has laid down a roadmap that provides 'ample and enough' opportunities for foreign players to increase their toehold in India.

In 2009, the second phase of reforms would be rolled out to enable foreign banks make greater inroads here.