FDI reform push: Cabinet clears bill to raise foreign investment in insurance to 100%; key guardrails, LIC changes included

The Union Cabinet has approved a bill to allow 100% foreign direct investment in the insurance sector, aiming to boost penetration and growth. The proposed legislation, slated for introduction soon, also includes provisions for mergers and a dedicated policyholder fund, while mandating Indian citizenship for key leadership roles. This move is expected to attract global capital and expertise.