Controversial 100% FDI Bill in Insurance Sparks Political Dispute

Several Rajya Sabha members opposed a bill to raise FDI in India’s insurance sector to 100%, demanding its review by a Parliamentary panel. Concerns highlighted included personal data sharing, potential foreign control, and economic implications, with calls for scrutiny and criticism of the bill’s title language mixing English and Hindi.

Members of the Rajya Sabha expressed significant opposition to the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which seeks to increase foreign direct investment (FDI) in India's insurance sector to 100%. The bill, presented by Finance Minister Nirmala Sitharaman, was previously passed by the Lok Sabha but now faces demands for rigorous examination by a Parliamentary panel.

Congress member Shaktisinh Gohil raised concerns over citizen privacy, citing worries about sharing personal information with foreign insurers and the potential for digital financial fraud. He compared the situation to past privatisations, such as that of Air India, warning of possible monopolies if unchecked foreign control occurs.

Meanwhile, BJP's Arun Singh defended the bill, arguing that regulatory control would remain with domestic bodies. However, opposition, including from Saket Gokhale of the All India Trinamool Congress, questioned the bill's rural impact, pricing regulations, and profit repatriation by foreign insurers. Despite being framed as a move for sector growth, the bill's FDI boost continues to evoke heated debate.

(With inputs from agencies.)