The proposed amendments will not be limited to the FDI cap alone.

Cabinet Approves 100% FDI in Insurance Sector: Major Boost for India’s Financial Growth

On Friday, the Union Cabinet approved a bill to raise the foreign direct investment (FDI) limit in the insurance sector to 100 per cent from the existing 74 per cent cap. This is a major policy decision focused on transforming India’s insurance landscape. The move was sanctioned as part of the government’s continuous efforts towards growth, attracting capital and enhancing competitiveness in one of the country’s critical financial services sectors.

The Insurance Laws (Amendment) Bill, 2025, is expected to be introduced in the ongoing Winter Session of Parliament, which is scheduled to conclude on December 19. The bill has been listed a

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