FDI cap in insurance sector increased to 74%

The FM has proposed hiking the FDI cap in the insurance sector to 74% from 49% currently in a move to deepen the insurance sector in India.

In her 2019 Budget speech also, the FM had hinted that the FDI cap could go up to 74%. The IRDAI has backed the move.

The insurance sector, both life and health, have assumed importance in the post-pandemic phase. High medical costs associated with Covid-19 have made people realise the value of having a good health insurance plan.

The insurance sector expected a big boost from the finance minister towards deepening the penetration of the industry in India.

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