Union Finance Minister Nirmala Sitharaman is delivering her 8th consecutive Budget speech in Parliament, with a sharp focus on economic growth, unemployment and middle-class relief. Among the key announcements, a major reform in the insurance sector was announced by the Finance Minister.
Sitharaman declared that the Foreign Direct Investment (FDI) limit in the insurance sector will be raised from 74% to 100%. “The FDI limit for the insurance sector will be increased to 100%, but only for companies that invest the entire premium within India. Additionally, the existing guardrails and conditions governing foreign investment will be reviewed and simplified,” she stated.
This reform is expected to attract significant foreign capital, enhance competition and strengthen the domestic insurance industry.