India’s Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the signing of a memorandum of understanding between the insurance regulators of India and the United States.

The proposed MoU between the Insurance Regulatory and Development Authority of India (IRDAI) and the US’s Federal Insurance Office “provides a framework for cooperation and coordination, including the exchange of information and research assistance with respect to each authority’s overview and other lawful responsibilities,” an official government source was quoted as saying by United News of India.

If finalised, the agreement will further strengthen the business relationship between the two countries. There are several American joint ventures in the Indian insurance industry, including Tata AIG General Insurance, Liberty Videocon General Insurance, and Cigna TTK Health Insurance.

“India and the US have also agreed to continue to facilitate cooperation on international standard-setting activities, financial stability and the development and implementation of consumer protection through sound prudential regulation of the insurance sector,” the source added.