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FDI Limit in Insurance Sector raised to 100%, subject to full domestic investment of premiums

Published: Feb 01, 2026

By TIOLCorplaws News Service

NEW DELHI, FEB 01, 2026: THE Central Government in its Union Budget of 2026, announced a major reform in the insurance sector by raising the Foreign Direct Investment (FDI) from 74 percent to 100 percent, signalling a push to attract long-term foreign capital and deepen insurance penetration in India.

The Finance Minister said that the FDI limit for the insurance sector will be raised from 74 to 100 per cent. This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified.

The enhanced FDI cap however, will be conditional and available only to those insurance companies that invest the entire premium allotted in India.

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