Which is the option that correctly shows the FDI rate?

• A. FDI via automatic route in LIC is 49%; While FDI in the insurance sector is 74%
• B. FDI via automatic route in LIC is 20%; While FDI in the insurance sector is 74%
• C. FDI via automatic route in LIC is 20%; While FDI in the insurance sector is 49%
• D. FDI via automatic route in LIC is 21%; While FDI in the insurance sector is 74%

Answer: (B)

The Union Cabinet has approved an amendment to the FDI Policy to allow FDI up to 20 percent under the "automatic route" in LIC. This comes ahead of IPO of LIC. It must be noted that the FDI limit in the insurance sector is 74 percent. Last year it was raised from 49% to 74%.