Centre Publishes Draft Rules to Allow 100% FDI in Insurance Sector

The Government of India published the Draft Indian Insurance Companies (Foreign Investment) Rules, 2015 in the Official Gazette, seeking input from stakeholders likely to be impacted by the changes.

The move follows Finance Minister Nirmala Sitharaman’s Budget 2025 announcement to raise the foreign direct investment (FDI) limit in the insurance sector from 74% to 100%, with certain conditions.

The draft rules propose aligning investment guidelines with the Insurance Act, 1938, to simplify compliance and encourage global investment.

They invite suggestions within 15 days of publication.