Budget 2025-26: FDI limit in insurance raised from 74% to 100%
On 1 February 2025, in Parliament in New Delhi, the Union Budget 2025-26 raised the FDI limit for the insurance sector from 74% to 100% for companies that invest the entire premium in India.
Summary
On 1 February 2025, in Parliament in New Delhi, Finance Minister Nirmala Sitharaman announced that the FDI limit for the insurance sector will be raised from 74% to 100%. The enhanced limit will be available to companies that invest the entire premium in India. Among other financial-sector measures, Public Sector Banks will develop a 'Grameen Credit Score' framework for SHG members and rural borrowers, and the Government will bring the Jan Vishwas Bill 2.0 to decriminalise more than 100 provisions in various laws.
Key facts
- Date / place
- 1 Feb 2025, Parliament, New Delhi
- Insurance FDI
- 74% to 100%
- Condition
- Companies that invest the entire premium in India
- Grameen Credit Score
- Framework by Public Sector Banks for SHG members and rural people
- Jan Vishwas Bill 2.0
- To decriminalise 100+ provisions
Practice MCQs 2 questions
The Union Budget 2025-26 raised the FDI limit for the insurance sector from 74% to:
Show answer
Correct answer: A — 100 per cent
PIB (1 Feb 2025): the FDI limit for the insurance sector will be raised from 74 to 100 per cent.
Consider the following statements about the Union Budget 2025-26: 1. The enhanced insurance FDI limit is available only to companies that invest the entire premium in India. 2. The 'Grameen Credit Score' framework will be developed by the Reserve Bank of India. Which of the statements given above is/are correct?
Show answer
Correct answer: A — 1 only
PIB and Budget speech: the higher FDI limit is for companies investing the entire premium in India, so statement 1 is correct. The Grameen Credit Score framework will be developed by Public Sector Banks, not the RBI, so statement 2 is wrong. Answer: 1 only.