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FDI in Insurance Sector Increased From 74% to 100%

February 02, 2025

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The New Indian Express Kochi

Capital Inflow

- UMA KANNAN @Bengaluru

In a move that could attract greater capital inflows into the insurance sector, the government has increased the foreign direct investment (FDI) limit for the insurance sector from 74% to 100%. Though the industry welcomes the move, it also raises concerns about regulatory complexities.

"This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with the foreign investment will be reviewed and simplified," according to finance minister Nirmala Sitharaman.

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