Budget 2021: Insurance investments get a boost with FDI limit hiked to 74%
This will be after the Insurance Laws (Amendment) Act is amended in the Parliament. February 01, 2021 / 04:09 PM IST
Finance minister Nirmala Sitharaman said in her Union Budget 2021 speech that the foreign direct investment limit in the insurance sector will be hiked to 74 percent from 49 percent.
This will be after the Insurance Laws (Amendment) Act 2015 and Insurance Act 1938 are amended in the Parliament. When the insurance sector was privatised in 2000, the FDI limit was fixed at 26 percent, which was then raised to 49 percent in 2015.
She said that the majority of the directors in the board of these insurance companies will have to be resident Indians. This means that Indian management control will be retained in these companies.