New Delhi, February 1, 2025: In a significant reform announced during the Union Budget 2025, the government has raised the Foreign Direct Investment (FDI) limit in the insurance sector to 100%. This move aims to attract greater foreign capital, strengthen the sector’s financial stability, and boost innovation in insurance products. Finance Minister Nirmala Sitharaman emphasized that the decision would enhance competition and benefit policyholders with improved services and coverage options.
Industry experts welcomed the decision, stating that increased foreign investment would bring much-needed liquidity and technological advancements to the insurance industry. The reform is expected to pave the way for global insurance giants to expand operations in India, fostering economic growth and job creation in the financial services sector.
