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Cabinet clears 100% FDI in insurance

The Morning Standard

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December 13, 2025

THE Union Cabinet on Friday approved a proposal to raise the foreign direct investment (FDI) limit in insurance firms from 74% to 100%, and usher in a set of structural reforms to strengthen the sector.

- PUSHPITA DEY @ New Delhi

The move is expected to draw substantial foreign capital, increase competition, and improve customer services across India's insurance market.The government is likely to introduce the Insurance Laws (Amendment) Bill, 2025 in Parliament on Monday, a senior finance ministry official confirmed.

By lifting the cap, the government aims to attract long-term global investors and deepen the sector's capital base.

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