‘FDI limit for insurance sector to be raised to 100%’: Nirmala Sitharaman

Finance Minister Nirmala Sithraman on Saturday proposed to raise the foreign investment limit to 100 per cent in the insurance sector as part of new-generation financial sector reforms. Presenting Budget 2025-26, the Finance Minister said the FDI limit for the insurance sector will be raised from 74 to 100 per cent.

"This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified," she said.

To enhance the FDI limit, the government will have to bring amendments to the Insurance Act 1938, the Life Insurance Corporation Act 1956, and the Insurance Regulatory and Development Authority Act 1999.