Raising FDI limit in insurance aimed at unlocking full potential of sector: Union Minister of Finance Ms. Nirmala Sitharaman

Union Finance Minister Ms. Nirmala Sitharaman announced in Parliament that raising the Foreign Direct Investment (FDI) cap in the insurance sector to 100% is expected to enhance annual growth to 7.1% in the coming five years, exceeding global growth rates. This initiative, suggested in the Union Budget 2025-26, increases the earlier threshold from 74% and streamlines foreign access by removing the necessity for Indian partners for the remaining 26%. The initiative aims to draw consistent and lasting foreign investment, boost competition, enable technology transfer, and greatly increase insurance penetration throughout the nation. The choice to raise FDI in a particular insurance firm is ultimately up to its promoters, depending on considerations like capital needs, solvency, and upcoming business plans. In answer to a different question, she described the continuous initiatives to enhance coverage for essential social security programs, specifically Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY). These initiatives are being encouraged through ongoing grassroots efforts, featuring active involvement from banks and local governments. Additionally, a three-month 'Financial Inclusion Saturation Campaign' started on July 1, 2025, covering 2.70 lakh Gram Panchayats and Urban Local Bodies (ULBs) across the country to enhance enrolments. Banks are setting up camps at the Gram Panchayat and ULB levels to provide direct access to information and support for enrolling in schemes, with a total of 2,421 Centres for Financial Literacy (CFLs) established by March 31, 2025, each serving around three blocks.