Analysis:

Our analysis assumes this case is taking place in 2012. ASG faces an opportunity to
support its insurance clients in India by identifying a non-market strategy to raise the
FDI cap from 26% to 49%. To assess this opportunity, the team evaluated stakeholders
and partnerships through a series of non-market strategy tools.

Current Challenges:
The parliamentary opposition has attempted to obstruct the passage of key legislations
due to an upcoming election. The nature of the power struggle between Congress and
BJP (Bharatiya Janata Party) serves as one of the toughest political frictions in
impeding policy change. BJP (the opposition party), therefore, will block any bill put forth
by Congress. This stagnation is purely political and does not reflect the merits of FDI
cap increase itself. In the wake of slow economic growth (link) the BJP is focusing on
economic growth and employment as their campaign agenda and hence less resistance
can be expected if they come to power. Therefore, with the upcoming elections, there is
a need to identify pivotal leaders in both parties who might play an influential role in the
future government to pave the way for the smooth execution of the client’s agenda.

There is also resistance from the domestic players within the industry. As the case
mentions, the large domestic insurance firms who are a part of a conglomerate like
Bajaj and ICICI oppose foreign investment to gain a competitive advantage over the
smaller firms. Due to their entrenched relations with the government across sectors,
overcoming their resistance will be crucial. At a broader scale, the sentiment around FDI
in India is negative across all sectors due to the growing discussion around retail sector
FDI proposal and navigating this sentiment needs to be analyzed.

Key Internal Advisors and Decision Makers

Within the Ministry of Finance, there is a Foreign Investment Promotion Board (FIPB)
that meets to consider FDI proposals (source). The FIPB consists of the Secretaries of
Economic Affairs, Industrial Policy & Promotion, Commerce, and External Affairs
(source). Although it is an influential actor and houses the FIPB, the Minister of Finance
is not independently responsible for passing FDI (Foreign Direct Investment) policy.
Besides, our analysis found that the Ministry of Commerce and Industry (MCI) is a
critical actor for FDI in India. Specifically, the Department for Promotion of Industry and
Internal Trade (DPIIT) within MCI is responsible for the "formulation of [FDI] policy and
promotion, approval and facilitation of FDI” (source). Primary and secondary research
conducted by Team 27 has indicated that the local citizens in India are not particularly
concerned with FDI policies since they do not appear to be directly affecting people’s
daily lives. Hence our recommendation is to make a strong effort in facilitating
decisionmaker buy-ins through internal advisors of the Indian government and focus on
forming coalitions and negotiations at the government and industry level

Critical External Influencers

FICCI (Federation of Indian Chambers of Commerce & Industry) is an independent
commerce advisory body to the government and one of the leading voices for insurance
industry policy change. Private Hospital Chains – Apollo and Max who partially rely on
insurance funds are concurrently in favor of raising FDI as they seek additional
resources to expand their businesses. Finally, local companies (Bharti) and international
Insurance firms displayed a desire in breaking into India’s insurance industry and are
also pushing to change the ratio of foreign investment allowed since their commitment
requires the use of foreign capital.