Insurance Bill to help finance current account deficit

India Infoline News Service | Mumbai |

According to Rajan, India will be able to tackle the CAD problem if it were to look for stable sources of financing

An early approval of the Insurance Bill could help finance the current account deficit (CAD), Raghuram Rajan, Chief Economic Advisor to Finance Ministry said on Sunday.

The Insurance Bill—which would raise the foreign direct investment (FDI) limit in the sector from 26% to 49%—is waiting for the approval from the Parliament.

The monsoon session of Parliament is expected to start in the first week of August.
According to Rajan, India will be able to tackle the CAD problem if it were to look for stable sources of financing — FDI, long-term equity investments, sovereign wealth funds and long-term pension funds.

There is a need to consider about other sources of financing and remove obstacles so that more FIIs (foreign institutional investors) are attracted, he added.
 

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