**Government’s Proposal to Increase FDI Limit in Insurance Sector Expected to Attract Global Players**
New Delhi, Feb 3 – Experts believe that the government’s initiative to raise the foreign direct investment (FDI) limit in the insurance sector will draw more international players into the market. The proposed increase to 100% FDI is anticipated to bring in significant foreign capital, fostering technological advancements and innovations within the country.
Aatur Thakkar, Co-founder and Director of Alliance Insurance Brokers, noted that the entry of international competitors will enhance product and service offerings, providing consumers with a wider array of choices tailored to their needs. He also highlighted the introduction of health insurance specifically for gig workers, addressing a critical gap in coverage for this expanding workforce and ensuring access to essential healthcare services, which will ultimately improve public health outcomes.
During the presentation of Budget 2025-26, Finance Minister Nirmala Sitharaman announced a social security scheme for one crore gig workers associated with online platforms, which includes the provision of identity cards and assistance with registration on the e-Shram portal. The Finance Minister proposed raising the FDI limit in the insurance sector from 74% to 100% as part of broader financial sector reforms.
Debashish Banerjee, Partner at Deloitte India, emphasized that increasing the FDI limit to 100% will enable many foreign companies to establish a presence in India, fostering competition that benefits policyholders. He added that these companies would introduce global innovations and leverage their extensive experience to enhance digital and technological progress in the industry.
Rudra Kumar Pandey, Partner at Shardul Amarchand Mangaldas & Co, stated that this initiative aims to attract more FDI, boost competition, and infuse additional capital, resources, and expertise into the sector. This influx is expected to lead to innovative solutions, greater insurance penetration, and improved risk management practices within the industry.
