India, May 2 -- The Centre has allowed up to 100% foreign direct investment (FDI) in insurance companies under the automatic route, weeks after clearing the proposal at the Cabinet level.

As per a government notification, the changes have been operationalised under the Insurance Laws (Amendment) Act, 2025.

The amendment was cleared in December 2025, raising the FDI cap from 74% to 100% as part of a broader sector overhaul.

The government said that the measure is expected to attract stable long-term investment, facilitate technology transfer, support greater insurance penetration and social protection.

Under the new rules, foreign investment in insurance companies would not require prior government approval, but will remain subject to ...