Finance Minister Nirmala Sitharaman has announced a major reform in the insurance sector by raising the foreign direct investment (FDI) limit from 74% to 100%. The enhanced FDI cap will apply to insurers that invest the entire premium collected within India.
This move is aimed at attracting more foreign capital, boosting competition, and enhancing financial stability in the insurance sector. The Economic Survey 2024-25 had highlighted the need for India to actively attract FDI by improving tax certainty and regulatory stability.
India’s total FDI inflows have reached a historic milestone of $1 trillion since April 2000, with the country simplifying laws and regulations to improve ease of doing business.
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Source: Moneycontrol
News Desk
