India Proposes 100% FDI in Insurance Sector: A Legislative Shift

The Indian government is set to introduce a bill to raise foreign direct investment in the insurance sector to 100% during the Winter session of Parliament, from December 1 to December 19, to stimulate growth, ease business regulation, and deepen market penetration to achieve 'Insurance for All by 2047'.

The Indian government is poised to introduce a significant legislative change aimed at enhancing the insurance sector's foreign direct investment (FDI) limit to 100%. This proposal is part of a broader agenda for the upcoming Winter session of Parliament, which is set to run from December 1 to December 19, spanning 15 workdays.

The Insurance Laws (Amendment) Bill 2025 is designed to deepen market penetration, promote efficient business operations, and drive economic growth by facilitating greater investment from abroad. This move, announced by Finance Minister Nirmala Sitharaman during this year's Budget speech, seeks to advance new-generation reforms in the financial sector.

The proposed amendments include changes to the Life Insurance Corporation Act, the Insurance Act of 1938, and the Insurance Regulatory and Development Authority Act, focusing on improving policyholders' interests and expanding the insurance market, ultimately targeting to achieve 'Insurance for All by 2047'.

(With inputs from agencies.)