FDI in Insurance Sector in India Increased to 100%, Welcoming Global Investments

India – The Indian government has approved a major reform by increasing foreign direct investment (FDI) in the insurance sector from 74% to 100%. Announced by Union Finance Minister Nirmala Sitharaman, this move aims to attract substantial foreign investments and global insurance giants, fostering competition and innovation in the market.

The reform aligns with the government’s vision of “Insurance for All” by 2047 and seeks to address India’s low insurance penetration, which stood at 3.7% in 2023-24 compared to the global average of 7%, according to an IRDAI report.

Experts highlight that full foreign ownership will bring advanced technologies, innovative products, and improved risk management practices to the industry. Additionally, the infusion of foreign capital is expected to enhance accessibility and improve the quality of insurance services across the country.