FDI limit in the Insurance sector has been raised from 74 per cent to 100 per cent

FDI limit in the Insurance sector has been raised from 74 per cent to 100 per cent.
In the budget FY25, Finance Minister Nirmala Sitharaman raised FDI limits in the insurance sector from 74 per cent to 100 per cent.
This enhanced limit will be for those companies who will invest the entire premium in India.
It will attract foreign investment, enhance competition, improve insurance penetration, and align with global practices.
At present, there are 26 life insurers and 27 general insurers including 2 specialized insurers.
The insurance sector has registered approximately 10% CAGR in the last five years.
The FDI limit in insurance was introduced in 2000 with a cap of 26%. It was gradually raised to 49% in 2015 and 74% in 2021.
In 2019, the Insurance intermediaries, such as brokers, were allowed 100% FDI.
The Government aims to use the full potential of the Indian insurance sector, which is projected to grow at 7.1% annually over the next five years.
Countries like Canada, Brazil, Australia, and China have allowed 100% FDI in their insurance sectors.