India raises insurance FDI to 100% for sector growth, competition

• India has approved 100% Foreign Direct Investment (FDI) in the insurance sector, raising the cap from the previous 74%.
• The Union Cabinet, led by PM Modi, approved the bill on December 12, aiming to attract more foreign capital and boost competition.
• The Insurance Laws (Amendment) Bill 2025 is slated for introduction in the ongoing Winter Session of Parliament.
• This move seeks to strengthen the sector, improve solvency, widen coverage, and drive product innovation.
• Broader reforms, such as composite licenses and lower capital requirements, are currently on hold, with only the FDI hike cleared.

Why It Matters: India's 100% insurance FDI aims to strengthen the sector, bringing capital and competition.