Current Affairs - Economy - Discussion

The Indian government has announced a landmark reform by allowing 100% Foreign Direct Investment (FDI) in the insurance sector, replacing the previous 74% cap. This change is part of the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, and aims to attract significant foreign capital into the sector. The Insurance Regulatory and Development Authority of India (IRDAI) will oversee the verification of such investments under the automatic route to ensure transparency. The reform is expected to encourage global insurers to enter the Indian market, foster innovation, strengthen competition, and provide much-needed capital. With India’s insurance industry projected to grow at 7.1% annually, this move is positioned to accelerate expansion and modernization.