Insurance: India raises Foreign Direct Investment limit

As part of its economic liberalization programme, the Indian government has increased the Foreign Direct Investment (FDI) limit in the insurance sector to 100%, up from the previous cap of 74%.

These investments are now permitted under the “automatic route,” meaning that foreign investors no longer require prior government approval to acquire full ownership of an Indian insurance company.

This measure is intended to attract additional capital, enhance competition, and further consolidate the market.

For reference, the FDI limit in the insurance sector was previously raised from 26% to 49% in 2015, and subsequently from 49% to 74% in 2021.