Union Budget 2025 increased the Sectoral cap of FDI to 100 per cent from 74 per cent for :

In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced an increase in the Foreign Direct Investment (FDI) sectoral cap for the insurance sector from 74 per cent to 100 per cent [2]. This landmark reform aims to achieve the goal of 'Insurance for All' by 2047 by attracting global capital and enhancing insurance penetration. The enhanced 100 per cent limit is specifically available for companies that invest the entire premium collected within India [2]. Historically, the FDI limit in insurance was raised from 26 per cent to 49 per cent in 2015, and subsequently to 74 per cent in 2021 [1]. While the Telecom sector already allows 100 per cent FDI under the automatic route and the Defence sector allows up to 74 per cent, the 2025 budget specifically targeted the insurance sector for this significant liberalization [2].

Sources

1. [1] https://www.pib.gov.in/PressReleasePage.aspx?PRID=2101785
2. [2] https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098394