Govt Notifies 100% FDI Plan for Insurance Sector:
The Ministry of Finance has issued a notification to facilitate 100% Foreign Direct Investment (FDI) in the insurance sector. This initiative, once approved by Parliament, will replace the current 74% cap, potentially transforming India’s insurance landscape and attracting greater foreign capital.
The new policy is outlined in the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, which proposes,
Replacing the 74% FDI cap with provisions “as stipulated by the Insurance Act, 1938”
Allowing 100% FDI via the automatic route, subject to verification by the Insurance Regulatory and Development Authority of India (IRDAI)
This regulatory change marks a strategic shift in India’s approach to foreign investment in insurance, aimed at unlocking capital, boosting innovation, and improving global competitiveness.
