The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday cleared a landmark bill to raise the foreign direct investment (FDI) cap in insurance companies to 100%, alongside a set of structural reforms aimed at deepening and modernising the sector. A formal briefing on the Cabinet decision is slated for 4 pm. Advertisement

The move is expected to draw substantial overseas capital into India’s insurance industry, intensify competition among players, and ultimately improve product offerings and service quality for customers. Higher FDI limits are also seen as critical for strengthening insurers’ balance sheets and supporting long-term infrastructure and social sector funding.

The proposed legislation seeks to amend three core acts — the Insurance Act, the LIC Act and the IRDAI

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