Foreign direct investment ceiling increases to 74% in India

On 18 March 2021, the Indian government approved the Insurance Law Amendment Bill of 1938. The main amendments focus on increasing the foreign direct investment (FDI) cap to 74% as opposed to the current 49%.

According to the bill, the majority of the Board of Directors and executives of a company must be resident Indians with at least 50% of the directors being independent. A specified percentage of the profits must be retained in the general reserve.

This policy would open up new financing opportunities and attract capital to insurance.

In 2015, the government had already raised the FDI cap from 26% to 49%.