What is the new foreign ownership limit for Indian insurance companies?

The foreign ownership limit has been increased to 100% for Indian insurance companies.

When will the Insurance Laws (Amendment) Bill 2025 be introduced?

The bill is expected to be introduced in the ongoing Winter session of Parliament, ending December 19.

How will allowing 100% foreign ownership benefit India's insurance sector?

It's expected to bring in more capital, enhance competition, improve customer service, and boost job creation.

Home / Business and Economy / India Opens Insurance Doors to Full Foreign Ownership

India Opens Insurance Doors to Full Foreign Ownership

12 Dec, 2025

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Summary

Foreign ownership limit in Indian insurance companies raised to 100%.
Bill to allow full foreign ownership expected in Parliament soon.
Reforms aim to boost capital, competition, and policyholder protection.

India Opens Insurance Doors to Full Foreign Ownership

The Union Cabinet has given the green light to a landmark decision enabling 100% foreign ownership in Indian insurance companies. This pivotal reform aims to attract substantial global capital, foster a more competitive market, and elevate customer service standards across the insurance sector. The anticipated Insurance Laws (Amendment) Bill 2025 is scheduled for presentation during the ongoing Winter session of Parliament.

Finance Minister Nirmala Sitharaman's proposal to increase the foreign direct investment limit from 74% to 100% is a key component of broader financial sector modernization efforts. Beyond the FDI hike, proposed changes include reducing paid-up capital requirements to ease market entry for new players and introducing a composite license system. These measures are intended to streamline operations and encourage innovation within the industry.