Budget 2021: Government Proposes Raising the FDI Limit for Insurance Industry in India to 74%

India’s insurance sector is staring at a historic overhaul.

In the Budget Speech, Finance Minister Nirmala Sitharaman announced the Government’s intention of increasing the FDI limit on the insurance sector to 74% from the current 49%.

The move would allow for foreign ownership and control of insurance companies “with safeguards”, and has the potential of modernising the sector in a major way.

How will the potential reform change the insurance sector? What are the challenges and opportunities ahead?

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