Keen to enter the growing Indian insurance sector,US billionaire Warren Buffett,who is here mainly to promote philanthropy,today wondered if India would raise the FDI limit in the sector to 49 per cent. The US based company is keenly watching the developments regarding further opening of the sector to foreign investment. Legendary investor Buffett,whose group recently entered Indian insurance market,called on Irda Chairman J Harinarayan here and wanted to know if the foreign direct investment (FDI) cap would be raised to 49 per cent. Irda is the insurance regulator. "Buffett wondered whether the foreign direct investment limit for foreign insurers could go up to 49 per cent (from the present 26 per cent)," Harinarayan said after meeting chairman of conglomerate Berkshire Hathaway. "The discussions were very general and was good," he said. Buffett,known for his business acumen and choice of investments,said that India is an "an exciting market". The Insurance Laws (Amendment) Bill,2008 is pending in Parliament. The Bill,when enacted,would allow raising the FDI cap for the industry to 49 per cent. However,it has been awaiting approval since 2008 as it was delayed by strong opposition from the Left parties. Berkshire Hathaway had recently forayed into the Indian non-life insurance sector as a corporate agent of Bajaj Allianz General. On his maiden visit to India,Buffett had said that an foreign investment cap of 26 per cent in insurance sector here was a deterrent. Earlier in the day,Berkshire Hathaway head re-insurance Ajit Jain said the question of larger investments in the sector in India,"depends on regulation." India-origin Jain,long rumoured to succeed Buffet,looks after the conglomerate's multi-billion dollar re-insurance business. Yesterday Buffett along with Bill Gates,held a dinner meeting here with 70 business people,including Wipro Chairman Azim Premji and discussed a wide range of issues related to philanthropy. As part of its India entry,the American conglomerate has incorporated Berkshire India to sell and distribute general insurance products in India. It would directly sell insurance to consumers through the portal 'www.berkshireinsurance.com' and by way of telemarketing. Berkshire Hathaway is a sprawling conglomerate that has interests in various businesses,including property and casualty insurance and reinsurance,finance,manufacturing,and retailing. Warren Buffett meets Prime Minister US-based billionaire Warren Buffett,who is visiting India to promote philanthropy,today called on Prime Minister Manmohan Singh. Buffett is believed to have discussed the efforts being made by him and other US-based businessmen to encourage captains of Indian industry to donate wealth for charitable work. The legendary investor,whose company Berkshire Hathaway,recently tied up with Bajaj Allianz for distribution of motor insurance products,has also met Insurance Regulatory and Development Authority (IRDA) chairman J Harinarayan. Besides meeting a group of 70 Indian industrialists yesterday,Buffett held discussions with Planning Commission Deputy Chairman Montek Singh Ahluwalia. The 80-year-old chairman and CEO of Berkshire Hathaway Buffett,who has pledged 99 per cent of his wealth to social causes,is on his maiden visit to India.
