Union Budget 2025: Government to Remove FDI CAP for Insurers
Cover for all: The reform is about Reshapping Insurance Landscape to EVERY EVERY EVERY Individual, Business Cancase Risk Protection | Photo Credit: Sushil Kumar Verma
Finance Minister Nirmala Sitharan on Saturday said the Foreign Direct Investment (FDI) Limit for the insurance sector will be raised from 74% to 100%.
However, the “Enhanced Limit will be available for that companies which investments the entry premium in India,” She said, announcing the proposal to remove the cap on Fdi, On the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition, In the Condition.
Current Guardrails and Conditionalities Associated with Foreign Investment will be reviewed and simplified, She said.
A peek into the union budget 2025-2026 Announcements for the Insurance Sector | Video Credit: Nagara Gopal
The government in 2020 Had Permitd 100% FDI in Insurance Intermediates Such as Insurance Brokers.
In November 2024, The Department of Financial Services Had Initiated The Process of Public Consultation on Raising Fdi in Indian Insurance Companies from 74% to 100% as Well as ENABLEN URANCE Business and activities related/Incidental to insurance.
At the heart of the measures is ‘insurance for all by 2047’ Goal being pursued by the government.
Insurance Industry Leaders and Top Executives Were Quick to Welcome the Budget Proposal.
Attract Investors
“The decision to allow 100% fdi in the insurance sector will attract global investments, strengthen the industry and foster innovation. The move promotes healthy competition, leading to better services, more choices, and potentially lower premiums for consumers, ”said pb fintech joint group CEO SANBVR SINBVR SINGHH.
The reform is not just about about increasing Capital Inflows – it is also about response the insurance landscape to ensure every person and business has access to Risk Protection. “As competition intensifies, we will see more transparency, faster claims processing and stronger trust in the industry,” Bajaj Alianz General Insurance MD- CEO Tapan Singhel SAID.
The announsement come Ore Taking a decision.
“Global Insurance Companies can now invest full and we anticipate the emergence of innovative products and services tailored to meet the diverse Needs of Indian Consulate Ad Mathur said.
The budget raised the threshold to deduct or collect tax at source on insurance commission from ₹ 15,000 to ₹ 20,000. The rate of deduction of income tax at source on insurance commission will be cut from 5% to 2% with effect from april 1.
The union government is also proposing to exempt the proceeds received Mium Amount.
Published – February 01, 2025 11:26 PM IST
