FDI hike aimed at unlocking insurance sector potential: FM

Raising the FDI limit in insurance to 100% will help the sector achieve its full potential by growing at 7.1% per annum over the next 5 years, outpacing the global growth, finance minister Nirmala Sitharaman informed Parliament on Monday.

- Press Trust of India

The finance minister in Union Budget 2025-26 had proposed to raise the limit of foreign investment in insurance sector from the existing 74% to 100%.

Raising the limit will eliminate the need for foreign investors to find Indian partners for the remaining 26%, easing the process of setting up their operations in India, effectively increasing the number of insurers in the country, she said in a written reply to Lok Sabha.

This will attract stable and sustained foreign investment, increase competition, facilitate technology transfer, and improve insurance penetration in the country, she said.