The Centre has allowed 100% FDI in the insurance sector through the automatic route, a major shift from tighter entry conditions. The move keeps FDI subject to the Insurance Act, 1938, and requires companies receiving foreign investment to obtain the necessary licence or approval from IRDAI to undertake insurance and related activities.
India has relaxed foreign investment rules under FEMA, letting overseas firms with up to a 10% Chinese ownership invest through the automatic route without prior government approval. The immediate change aims to revive foreign capital inflows and comes after restrictions introduced in 2020. The update applies right away for eligible investments, signalling a more open stance.
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