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India Allows 100% Foreign Direct Investment in Insurance

The bill aims to attract global investors, improve insurer solvency, and boost insurance penetration targeting 'Insurance for All by 2047,' with Rs 82,000 crore FDI so far.

  • On December 12, the Union Cabinet chaired by Prime Minister Narendra Modi approved the Insurance Laws Bill 2025 to raise FDI in insurance to 100%.
  • The finance ministry proposed amendments to the Insurance Act, 1938, including capital and licensing changes, while planned regulatory changes extend to the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999.
  • Officials said the changes aim to attract more global players and foreign capital, improve insurer solvency and balance sheets, and increase competition to drive product innovation and customer service.
  • The bill is set for introduction in the ongoing Winter Session, which concludes on December 19, and a Lok Sabha bulletin lists it among 13 items scheduled for discussion.
  • Despite the FDI decision, several broader reforms such as composite licences remain on hold, with the insurance sector having attracted Rs 82,000 crore in FDI, supporting the goal of 'Insurance for All by 2047'.
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NDTV Profit broke the news in on Thursday, December 11, 2025.
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