Signalling a long-term stability in its foreign investment policy, India has offered to bind itself to allowing 100 per cent foreign equity in key services sectors. Simultaneously, for a large number of financial services like factoring, financial leasing and venture capital, the government has offered to bind the equity participation level of foreign companies at 74 per cent instead of the current 51 per cent. For banks entering into these businesses, the foreign investment cap is proposed to be maintained at 51 per cent.
India's initial offers for services negotiations at the World Trade Organisation (WTO) do not propose any bindings in life and non-life insurance underwriting, except freight. It has, however, offered largely unbound commercial access through branches and subsidiaries in the reinsurance business.
