New Delhi, Feb 3 (PTI) The proposal of the government to increase the foreign direct investment (FDI) limit in the insurance sector will help attract more overseas players in the sector, experts say.
They said that 100 per cent FDI will attract substantial foreign capital, which will lead to improved technological interventions and advancements in the country.
“With international competitors entering the country, consumers can expect better products and services, empowering them with more choices tailored to their needs,” Aatur Thakkar, Co-founder and Director of Alliance Insurance Brokers, said.
Thakkar added that the provision of health insurance specifically for gig workers addresses a significant gap in coverage for this growing workforce segment, ensuring that they have access to essential healthcare services and improving overall public health outcomes.
Finance Minister Nirmala Sitharaman on Saturday announced a social security scheme for one crore gig workers engaged with online platforms and said the government will provide them identity cards and facilitate their registration on the e-Shram portal.
She also proposed to raise the foreign investment limit to 100 per cent in the insurance sector as part of new-generation financial sector reforms.
Presenting Budget 2025-26, the Finance Minister said the FDI limit for the insurance sector will be raised from 74 per cent to 100 per cent.
Debashish Banerjee, Partner at Deloitte India, said the FDI limit to 100 per cent will help a lot of foreign companies to stay foot in India and bring in competition which in turn should help the policyholder at large.
“Above this, they would bring in global innovation and their century-old experiences that will boost digital and technological advancement in the industry,” he said.
Rudra Kumar Pandey, Partner at Shardul Amarchand Mangaldas & Co, said the move aims to bring in more FDI, increase competition, and infuse more capital, resources and expertise into the sector which will enable innovative solutions, greater penetration of insurance and effective practices of risk management in the sector.